Correlation Between Sabra Healthcare and 26884UAC3
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By analyzing existing cross correlation between Sabra Healthcare REIT and EPR PPTYS 475, you can compare the effects of market volatilities on Sabra Healthcare and 26884UAC3 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 26884UAC3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and 26884UAC3.
Diversification Opportunities for Sabra Healthcare and 26884UAC3
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sabra and 26884UAC3 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and EPR PPTYS 475 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR PPTYS 475 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 26884UAC3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR PPTYS 475 has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and 26884UAC3 go up and down completely randomly.
Pair Corralation between Sabra Healthcare and 26884UAC3
Given the investment horizon of 90 days Sabra Healthcare REIT is expected to under-perform the 26884UAC3. In addition to that, Sabra Healthcare is 1.67 times more volatile than EPR PPTYS 475. It trades about -0.23 of its total potential returns per unit of risk. EPR PPTYS 475 is currently generating about -0.18 per unit of volatility. If you would invest 9,920 in EPR PPTYS 475 on September 12, 2024 and sell it today you would lose (325.00) from holding EPR PPTYS 475 or give up 3.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. EPR PPTYS 475
Performance |
| Timeline |
| Sabra Healthcare REIT |
| EPR PPTYS 475 |
Sabra Healthcare and 26884UAC3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and 26884UAC3
The main advantage of trading using opposite Sabra Healthcare and 26884UAC3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, 26884UAC3 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 26884UAC3 will offset losses from the drop in 26884UAC3'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 |
| 26884UAC3 vs. Stepstone Group | 26884UAC3 vs. Nabors Industries | 26884UAC3 vs. Independence Realty Trust | 26884UAC3 vs. Precision Drilling |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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