Correlation Between Sabra Healthcare and PS Business
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and PS Business 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 PS Business 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 PS Business Parks, you can compare the effects of market volatilities on Sabra Healthcare and PS Business 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 PS Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and PS Business.
Diversification Opportunities for Sabra Healthcare and PS Business
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sabra and PSBXP is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and PS Business Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS Business Parks 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 PS Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS Business Parks has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and PS Business go up and down completely randomly.
Pair Corralation between Sabra Healthcare and PS Business
If you would invest 1,400 in PS Business Parks on September 1, 2024 and sell it today you would earn a total of 0.00 from holding PS Business Parks or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. PS Business Parks
Performance |
| Timeline |
| Sabra Healthcare REIT |
| PS Business Parks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sabra Healthcare and PS Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and PS Business
The main advantage of trading using opposite Sabra Healthcare and PS Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, PS Business 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 PS Business will offset losses from the drop in PS Business' long position.| Sabra Healthcare vs. Douglas Emmett | Sabra Healthcare vs. Vornado Realty Trust | Sabra Healthcare vs. Highwoods Properties | Sabra Healthcare vs. Piedmont Office Realty |
| PS Business vs. Sabra Healthcare REIT | PS Business vs. Gentex | PS Business vs. Freedom Holding Corp | PS Business vs. Brunswick |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |