Correlation Between Sabra Healthcare and Artisan Partners
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and Artisan Partners 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 Healthcare and Artisan Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabra Healthcare REIT and Artisan Partners Asset, you can compare the effects of market volatilities on Sabra Healthcare and Artisan Partners 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 Healthcare with a short position of Artisan Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and Artisan Partners.
Diversification Opportunities for Sabra Healthcare and Artisan Partners
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sabra and Artisan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and Artisan Partners Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Partners Asset and Sabra Healthcare 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 Healthcare REIT are associated (or correlated) with Artisan Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Partners Asset has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and Artisan Partners go up and down completely randomly.
Pair Corralation between Sabra Healthcare and Artisan Partners
Given the investment horizon of 90 days Sabra Healthcare REIT is expected to under-perform the Artisan Partners. But the stock apears to be less risky and, when comparing its historical volatility, Sabra Healthcare REIT is 1.22 times less risky than Artisan Partners. The stock trades about -0.02 of its potential returns per unit of risk. The Artisan Partners Asset is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,245 in Artisan Partners Asset on August 24, 2024 and sell it today you would earn a total of 525.00 from holding Artisan Partners Asset or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. Artisan Partners Asset
Performance |
| Timeline |
| Sabra Healthcare REIT |
| Artisan Partners Asset |
Sabra Healthcare and Artisan Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and Artisan Partners
The main advantage of trading using opposite Sabra Healthcare and Artisan Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, Artisan Partners 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 Artisan Partners will offset losses from the drop in Artisan Partners' long position.| Sabra Healthcare vs. Healthcare Realty Trust | Sabra Healthcare vs. Welltower | Sabra Healthcare vs. Diversified Healthcare Trust | Sabra Healthcare vs. Healthpeak Properties |
| Artisan Partners vs. Federated Premier Municipal | Artisan Partners vs. Blackrock Muniyield | Artisan Partners vs. Diamond Hill Investment | Artisan Partners vs. NXG NextGen Infrastructure |
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 CEOs Directory module to screen CEOs from public companies around the world.
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