Correlation Between Sabra Healthcare and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and Kite Realty 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 Kite Realty 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 Kite Realty Group, you can compare the effects of market volatilities on Sabra Healthcare and Kite Realty 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 Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and Kite Realty.
Diversification Opportunities for Sabra Healthcare and Kite Realty
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sabra and Kite is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group 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 Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and Kite Realty go up and down completely randomly.
Pair Corralation between Sabra Healthcare and Kite Realty
Given the investment horizon of 90 days Sabra Healthcare REIT is expected to generate 1.07 times more return on investment than Kite Realty. However, Sabra Healthcare is 1.07 times more volatile than Kite Realty Group. It trades about 0.1 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.1 per unit of risk. If you would invest 1,350 in Sabra Healthcare REIT on August 26, 2024 and sell it today you would earn a total of 491.00 from holding Sabra Healthcare REIT or generate 36.37% 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. Kite Realty Group
Performance |
| Timeline |
| Sabra Healthcare REIT |
| Kite Realty Group |
Sabra Healthcare and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and Kite Realty
The main advantage of trading using opposite Sabra Healthcare and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, Kite Realty 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 Kite Realty will offset losses from the drop in Kite Realty'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 |
| Kite Realty vs. Site Centers Corp | Kite Realty vs. Inventrust Properties Corp | Kite Realty vs. Retail Opportunity Investments | Kite Realty vs. Netstreit Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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