Correlation Between PEAK Old and LTC Properties
Can any of the company-specific risk be diversified away by investing in both PEAK Old and LTC Properties at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PEAK Old and LTC Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEAK Old and LTC Properties, you can compare the effects of market volatilities on PEAK Old and LTC Properties and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PEAK Old with a short position of LTC Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEAK Old and LTC Properties.
Diversification Opportunities for PEAK Old and LTC Properties
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PEAK and LTC is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding PEAK Old and LTC Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LTC Properties and PEAK Old is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PEAK Old are associated (or correlated) with LTC Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LTC Properties has no effect on the direction of PEAK Old i.e., PEAK Old and LTC Properties go up and down completely randomly.
Pair Corralation between PEAK Old and LTC Properties
If you would invest 3,576 in LTC Properties on August 27, 2024 and sell it today you would earn a total of 267.00 from holding LTC Properties or generate 7.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
PEAK Old vs. LTC Properties
Performance |
| Timeline |
| PEAK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LTC Properties |
PEAK Old and LTC Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PEAK Old and LTC Properties
The main advantage of trading using opposite PEAK Old and LTC Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEAK Old position performs unexpectedly, LTC Properties can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LTC Properties will offset losses from the drop in LTC Properties' long position.| PEAK Old vs. Welltower | PEAK Old vs. Mid America Apartment Communities | PEAK Old vs. Regency Centers | PEAK Old vs. UDR Inc |
| LTC Properties vs. Medical Properties Trust | LTC Properties vs. Sabra Healthcare REIT | LTC Properties vs. Healthpeak Properties | LTC Properties vs. National Health Investors |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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