Correlation Between Sabra Healthcare and VICI Properties
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and VICI Properties 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 VICI Properties 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 VICI Properties, you can compare the effects of market volatilities on Sabra Healthcare and VICI Properties 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 VICI Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and VICI Properties.
Diversification Opportunities for Sabra Healthcare and VICI Properties
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabra and VICI is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and VICI Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VICI Properties 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 VICI Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VICI Properties has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and VICI Properties go up and down completely randomly.
Pair Corralation between Sabra Healthcare and VICI Properties
Given the investment horizon of 90 days Sabra Healthcare REIT is expected to under-perform the VICI Properties. In addition to that, Sabra Healthcare is 1.88 times more volatile than VICI Properties. It trades about -0.04 of its total potential returns per unit of risk. VICI Properties is currently generating about -0.01 per unit of volatility. If you would invest 3,236 in VICI Properties on August 27, 2024 and sell it today you would lose (13.00) from holding VICI Properties or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. VICI Properties
Performance |
| Timeline |
| Sabra Healthcare REIT |
| VICI Properties |
Sabra Healthcare and VICI Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and VICI Properties
The main advantage of trading using opposite Sabra Healthcare and VICI Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, VICI Properties 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 VICI Properties will offset losses from the drop in VICI Properties' 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 |
| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
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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