Correlation Between Sabra Healthcare and GetSwift Technologies
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and GetSwift Technologies 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 GetSwift Technologies 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 GetSwift Technologies Limited, you can compare the effects of market volatilities on Sabra Healthcare and GetSwift Technologies 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 GetSwift Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and GetSwift Technologies.
Diversification Opportunities for Sabra Healthcare and GetSwift Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabra and GetSwift is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and GetSwift Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GetSwift Technologies 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 GetSwift Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GetSwift Technologies has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and GetSwift Technologies go up and down completely randomly.
Pair Corralation between Sabra Healthcare and GetSwift Technologies
Given the investment horizon of 90 days Sabra Healthcare is expected to generate 83.23 times less return on investment than GetSwift Technologies. But when comparing it to its historical volatility, Sabra Healthcare REIT is 51.61 times less risky than GetSwift Technologies. It trades about 0.08 of its potential returns per unit of risk. GetSwift Technologies Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2.00 in GetSwift Technologies Limited on August 29, 2024 and sell it today you would lose (1.99) from holding GetSwift Technologies Limited or give up 99.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 29.23% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. GetSwift Technologies Limited
Performance |
| Timeline |
| Sabra Healthcare REIT |
| GetSwift Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sabra Healthcare and GetSwift Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and GetSwift Technologies
The main advantage of trading using opposite Sabra Healthcare and GetSwift Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, GetSwift Technologies 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 GetSwift Technologies will offset losses from the drop in GetSwift Technologies' 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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