Correlation Between Sabra Healthcare and Village Super
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare and Village Super 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 Village Super 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 Village Super Market, you can compare the effects of market volatilities on Sabra Healthcare and Village Super 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 Village Super. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and Village Super.
Diversification Opportunities for Sabra Healthcare and Village Super
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sabra and Village is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and Village Super Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Village Super Market 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 Village Super. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Village Super Market has no effect on the direction of Sabra Healthcare i.e., Sabra Healthcare and Village Super go up and down completely randomly.
Pair Corralation between Sabra Healthcare and Village Super
Given the investment horizon of 90 days Sabra Healthcare REIT is expected to generate 0.65 times more return on investment than Village Super. However, Sabra Healthcare REIT is 1.54 times less risky than Village Super. It trades about 0.13 of its potential returns per unit of risk. Village Super Market is currently generating about 0.01 per unit of risk. If you would invest 1,672 in Sabra Healthcare REIT on August 31, 2024 and sell it today you would earn a total of 219.00 from holding Sabra Healthcare REIT or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. Village Super Market
Performance |
| Timeline |
| Sabra Healthcare REIT |
| Village Super Market |
Sabra Healthcare and Village Super Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and Village Super
The main advantage of trading using opposite Sabra Healthcare and Village Super positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare position performs unexpectedly, Village Super 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 Village Super will offset losses from the drop in Village Super's long position.| Sabra Healthcare vs. LTC Properties | Sabra Healthcare vs. Healthpeak Properties | Sabra Healthcare vs. National Health Investors | Sabra Healthcare vs. Omega Healthcare Investors |
| Village Super vs. Ingles Markets Incorporated | Village Super vs. Natural Grocers by | Village Super vs. Grocery Outlet Holding | Village Super vs. Weis Markets |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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