Correlation Between Sabra Healthcare and 78387GAM5
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By analyzing existing cross correlation between Sabra Healthcare REIT and SBC MUNICATIONS INC, you can compare the effects of market volatilities on Sabra Healthcare and 78387GAM5 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 78387GAM5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and 78387GAM5.
Diversification Opportunities for Sabra Healthcare and 78387GAM5
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sabra and 78387GAM5 is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and SBC MUNICATIONS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBC MUNICATIONS INC 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 78387GAM5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBC MUNICATIONS INC has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and 78387GAM5 go up and down completely randomly.
Pair Corralation between Sabra Healthcare and 78387GAM5
Given the investment horizon of 90 days Sabra Healthcare REIT is expected to generate 0.72 times more return on investment than 78387GAM5. However, Sabra Healthcare REIT is 1.39 times less risky than 78387GAM5. It trades about 0.15 of its potential returns per unit of risk. SBC MUNICATIONS INC is currently generating about 0.05 per unit of risk. If you would invest 1,381 in Sabra Healthcare REIT on September 3, 2024 and sell it today you would earn a total of 492.00 from holding Sabra Healthcare REIT or generate 35.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 46.58% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. SBC MUNICATIONS INC
Performance |
| Timeline |
| Sabra Healthcare REIT |
| SBC MUNICATIONS INC |
Sabra Healthcare and 78387GAM5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and 78387GAM5
The main advantage of trading using opposite Sabra Healthcare and 78387GAM5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, 78387GAM5 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 78387GAM5 will offset losses from the drop in 78387GAM5's long position.| Sabra Healthcare vs. Community Healthcare Trust | Sabra Healthcare vs. Global Medical REIT | Sabra Healthcare vs. CareTrust REIT | Sabra Healthcare vs. Welltower |
| 78387GAM5 vs. Plexus Corp | 78387GAM5 vs. Inflection Point Acquisition | 78387GAM5 vs. Sabra Healthcare REIT | 78387GAM5 vs. Mind Technology |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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