Correlation Between Sabra Healthcare and Gaming Leisure
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and Gaming Leisure 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 Gaming Leisure 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 Gaming Leisure Properties, you can compare the effects of market volatilities on Sabra Healthcare and Gaming Leisure 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 Gaming Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and Gaming Leisure.
Diversification Opportunities for Sabra Healthcare and Gaming Leisure
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sabra and Gaming is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and Gaming Leisure Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Leisure Properties 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 Gaming Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Leisure Properties has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and Gaming Leisure go up and down completely randomly.
Pair Corralation between Sabra Healthcare and Gaming Leisure
Given the investment horizon of 90 days Sabra Healthcare REIT is expected to under-perform the Gaming Leisure. In addition to that, Sabra Healthcare is 1.3 times more volatile than Gaming Leisure Properties. It trades about -0.06 of its total potential returns per unit of risk. Gaming Leisure Properties is currently generating about 0.05 per unit of volatility. If you would invest 4,805 in Gaming Leisure Properties on November 18, 2024 and sell it today you would earn a total of 56.00 from holding Gaming Leisure Properties or generate 1.17% 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. Gaming Leisure Properties
Performance |
| Timeline |
| Sabra Healthcare REIT |
| Gaming Leisure Properties |
Sabra Healthcare and Gaming Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and Gaming Leisure
The main advantage of trading using opposite Sabra Healthcare and Gaming Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, Gaming Leisure 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 Gaming Leisure will offset losses from the drop in Gaming Leisure'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 |
| Gaming Leisure vs. VICI Properties | Gaming Leisure vs. Brixmor Property | Gaming Leisure vs. Sabra Healthcare REIT | Gaming Leisure vs. CubeSmart |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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