Correlation Between Alpineome Property and Global Medical
Can any of the company-specific risk be diversified away by investing in both Alpineome Property and Global Medical 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 Alpineome Property and Global Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpineome Property Trust and Global Medical REIT, you can compare the effects of market volatilities on Alpineome Property and Global Medical 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 Alpineome Property with a short position of Global Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpineome Property and Global Medical.
Diversification Opportunities for Alpineome Property and Global Medical
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alpineome and Global is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Alpineome Property Trust and Global Medical REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Medical REIT and Alpineome Property 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 Alpineome Property Trust are associated (or correlated) with Global Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Medical REIT has no effect on the direction of Alpineome Property i.e., Alpineome Property and Global Medical go up and down completely randomly.
Pair Corralation between Alpineome Property and Global Medical
Given the investment horizon of 90 days Alpineome Property is expected to generate 1.95 times less return on investment than Global Medical. But when comparing it to its historical volatility, Alpineome Property Trust is 1.42 times less risky than Global Medical. It trades about 0.0 of its potential returns per unit of risk. Global Medical REIT is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 787.00 in Global Medical REIT on October 25, 2024 and sell it today you would lose (1.00) from holding Global Medical REIT or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alpineome Property Trust vs. Global Medical REIT
Performance |
| Timeline |
| Alpineome Property Trust |
| Global Medical REIT |
Alpineome Property and Global Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpineome Property and Global Medical
The main advantage of trading using opposite Alpineome Property and Global Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpineome Property position performs unexpectedly, Global Medical 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 Global Medical will offset losses from the drop in Global Medical's long position.| Alpineome Property vs. Rithm Property Trust | Alpineome Property vs. Kite Realty Group | Alpineome Property vs. Inventrust Properties Corp | Alpineome Property vs. Four Corners Property |
| Global Medical vs. Healthpeak Properties | Global Medical vs. Ventas Inc | Global Medical vs. National Health Investors | Global Medical vs. Sabra Healthcare REIT |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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