Correlation Between Sabra Healthcare and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and Brixmor Property 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 Brixmor Property 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 Brixmor Property, you can compare the effects of market volatilities on Sabra Healthcare and Brixmor Property 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 Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and Brixmor Property.
Diversification Opportunities for Sabra Healthcare and Brixmor Property
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sabra and Brixmor is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property 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 Brixmor Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brixmor Property has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and Brixmor Property go up and down completely randomly.
Pair Corralation between Sabra Healthcare and Brixmor Property
Given the investment horizon of 90 days Sabra Healthcare is expected to generate 1.17 times less return on investment than Brixmor Property. In addition to that, Sabra Healthcare is 1.17 times more volatile than Brixmor Property. It trades about 0.16 of its total potential returns per unit of risk. Brixmor Property is currently generating about 0.22 per unit of volatility. If you would invest 2,113 in Brixmor Property on August 24, 2024 and sell it today you would earn a total of 860.00 from holding Brixmor Property or generate 40.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. Brixmor Property
Performance |
| Timeline |
| Sabra Healthcare REIT |
| Brixmor Property |
Sabra Healthcare and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and Brixmor Property
The main advantage of trading using opposite Sabra Healthcare and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, Brixmor Property 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 Brixmor Property will offset losses from the drop in Brixmor Property's long position.| Sabra Healthcare vs. Healthcare Realty Trust | Sabra Healthcare vs. Community Healthcare Trust | Sabra Healthcare vs. Global Medical REIT | Sabra Healthcare vs. CareTrust REIT |
| Brixmor Property vs. Site Centers Corp | Brixmor Property vs. CBL Associates Properties | Brixmor Property vs. Urban Edge Properties | Brixmor Property vs. Acadia Realty Trust |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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