Correlation Between Sabra Healthcare and Evofem Biosciences
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and Evofem Biosciences 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 Evofem Biosciences 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 Evofem Biosciences, you can compare the effects of market volatilities on Sabra Healthcare and Evofem Biosciences 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 Evofem Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and Evofem Biosciences.
Diversification Opportunities for Sabra Healthcare and Evofem Biosciences
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sabra and Evofem is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and Evofem Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evofem Biosciences 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 Evofem Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evofem Biosciences has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and Evofem Biosciences go up and down completely randomly.
Pair Corralation between Sabra Healthcare and Evofem Biosciences
If you would invest 1,837 in Sabra Healthcare REIT on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Sabra Healthcare REIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. Evofem Biosciences
Performance |
| Timeline |
| Sabra Healthcare REIT |
| Evofem Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sabra Healthcare and Evofem Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and Evofem Biosciences
The main advantage of trading using opposite Sabra Healthcare and Evofem Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, Evofem Biosciences 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 Evofem Biosciences will offset losses from the drop in Evofem Biosciences' 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 |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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