Correlation Between TPG RE and Extendicare
Can any of the company-specific risk be diversified away by investing in both TPG RE and Extendicare 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 TPG RE and Extendicare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPG RE Finance and Extendicare, you can compare the effects of market volatilities on TPG RE and Extendicare 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 TPG RE with a short position of Extendicare. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPG RE and Extendicare.
Diversification Opportunities for TPG RE and Extendicare
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TPG and Extendicare is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding TPG RE Finance and Extendicare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extendicare and TPG RE 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 TPG RE Finance are associated (or correlated) with Extendicare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extendicare has no effect on the direction of TPG RE i.e., TPG RE and Extendicare go up and down completely randomly.
Pair Corralation between TPG RE and Extendicare
If you would invest 500.00 in Extendicare on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Extendicare or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
TPG RE Finance vs. Extendicare
Performance |
| Timeline |
| TPG RE Finance |
| Extendicare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TPG RE and Extendicare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPG RE and Extendicare
The main advantage of trading using opposite TPG RE and Extendicare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPG RE position performs unexpectedly, Extendicare 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 Extendicare will offset losses from the drop in Extendicare's long position.| TPG RE vs. ACRES Commercial Realty | TPG RE vs. Dynex Capital | TPG RE vs. PennyMac Mortgage Investment | TPG RE vs. AG Mortgage Investment |
| Extendicare vs. Ramsay Health Care | Extendicare vs. Jack Nathan Medical | Extendicare vs. Nova Leap Health | Extendicare vs. Fresenius SE Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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