Correlation Between Sabra Health and Universal Health
Can any of the company-specific risk be diversified away by investing in both Sabra Health and Universal Health 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 Sabra Health and Universal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabra Health Care and Universal Health Realty, you can compare the effects of market volatilities on Sabra Health and Universal Health 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 Sabra Health with a short position of Universal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and Universal Health.
Diversification Opportunities for Sabra Health and Universal Health
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabra and Universal is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and Universal Health Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Health Realty and Sabra Health 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 Sabra Health Care are associated (or correlated) with Universal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Health Realty has no effect on the direction of Sabra Health i.e., Sabra Health and Universal Health go up and down completely randomly.
Pair Corralation between Sabra Health and Universal Health
Assuming the 90 days horizon Sabra Health Care is expected to generate 0.97 times more return on investment than Universal Health. However, Sabra Health Care is 1.04 times less risky than Universal Health. It trades about 0.07 of its potential returns per unit of risk. Universal Health Realty is currently generating about 0.0 per unit of risk. If you would invest 1,011 in Sabra Health Care on August 25, 2024 and sell it today you would earn a total of 729.00 from holding Sabra Health Care or generate 72.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Health Care vs. Universal Health Realty
Performance |
| Timeline |
| Sabra Health Care |
| Universal Health Realty |
Sabra Health and Universal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and Universal Health
The main advantage of trading using opposite Sabra Health and Universal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health position performs unexpectedly, Universal Health 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 Universal Health will offset losses from the drop in Universal Health's long position.| Sabra Health vs. Welltower | Sabra Health vs. Medical Properties Trust | Sabra Health vs. National Health Investors | Sabra Health vs. The GEO Group |
| Universal Health vs. Welltower | Universal Health vs. Medical Properties Trust | Universal Health vs. Sabra Health Care | Universal Health 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |