Correlation Between Sabra Healthcare and Alta Global
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and Alta Global 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 Alta Global 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 Alta Global Group, you can compare the effects of market volatilities on Sabra Healthcare and Alta Global 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 Alta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and Alta Global.
Diversification Opportunities for Sabra Healthcare and Alta Global
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabra and Alta is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and Alta Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Global 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 Alta Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Global Group has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and Alta Global go up and down completely randomly.
Pair Corralation between Sabra Healthcare and Alta Global
Given the investment horizon of 90 days Sabra Healthcare REIT is expected to generate 0.2 times more return on investment than Alta Global. However, Sabra Healthcare REIT is 4.89 times less risky than Alta Global. It trades about 0.08 of its potential returns per unit of risk. Alta Global Group is currently generating about -0.03 per unit of risk. If you would invest 1,058 in Sabra Healthcare REIT on September 2, 2024 and sell it today you would earn a total of 815.00 from holding Sabra Healthcare REIT or generate 77.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 34.68% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. Alta Global Group
Performance |
| Timeline |
| Sabra Healthcare REIT |
| Alta Global Group |
Sabra Healthcare and Alta Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and Alta Global
The main advantage of trading using opposite Sabra Healthcare and Alta Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, Alta Global 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 Alta Global will offset losses from the drop in Alta Global'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 |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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