Correlation Between Sabra Healthcare and FDG Electric
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and FDG Electric 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 FDG Electric 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 FDG Electric Vehicles, you can compare the effects of market volatilities on Sabra Healthcare and FDG Electric 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 FDG Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and FDG Electric.
Diversification Opportunities for Sabra Healthcare and FDG Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabra and FDG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and FDG Electric Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDG Electric Vehicles 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 FDG Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDG Electric Vehicles has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and FDG Electric go up and down completely randomly.
Pair Corralation between Sabra Healthcare and FDG Electric
If you would invest 1,039 in Sabra Healthcare REIT on September 2, 2024 and sell it today you would earn a total of 834.00 from holding Sabra Healthcare REIT or generate 80.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. FDG Electric Vehicles
Performance |
| Timeline |
| Sabra Healthcare REIT |
| FDG Electric Vehicles |
Sabra Healthcare and FDG Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and FDG Electric
The main advantage of trading using opposite Sabra Healthcare and FDG Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, FDG Electric 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 FDG Electric will offset losses from the drop in FDG Electric's long position.| Sabra Healthcare vs. Healthcare Realty Trust | Sabra Healthcare vs. Healthpeak Properties | Sabra Healthcare vs. Community Healthcare Trust | Sabra Healthcare vs. Universal Health Realty |
| FDG Electric vs. Allison Transmission Holdings | FDG Electric vs. Luminar Technologies | FDG Electric vs. Quantumscape Corp | FDG Electric vs. Lear Corporation |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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