Correlation Between Sabra Healthcare and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and Inflection Point 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 Inflection Point 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 Inflection Point Acquisition, you can compare the effects of market volatilities on Sabra Healthcare and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and Inflection Point.
Diversification Opportunities for Sabra Healthcare and Inflection Point
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sabra and Inflection is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and Inflection Point go up and down completely randomly.
Pair Corralation between Sabra Healthcare and Inflection Point
If you would invest 1,086 in Inflection Point Acquisition on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Inflection Point Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. Inflection Point Acquisition
Performance |
| Timeline |
| Sabra Healthcare REIT |
| Inflection Point Acq |
Sabra Healthcare and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and Inflection Point
The main advantage of trading using opposite Sabra Healthcare and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| Sabra Healthcare vs. Healthcare Realty Trust | Sabra Healthcare vs. Welltower | Sabra Healthcare vs. American Healthcare REIT, | Sabra Healthcare vs. Diversified Healthcare Trust |
| Inflection Point vs. Aegon NV ADR | Inflection Point vs. NI Holdings | Inflection Point vs. Siriuspoint | Inflection Point vs. Marfrig Global Foods |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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