Correlation Between Urban Edge and Healthpeak Properties
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Healthpeak 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 Urban Edge and Healthpeak Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and Healthpeak Properties, you can compare the effects of market volatilities on Urban Edge and Healthpeak 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 Urban Edge with a short position of Healthpeak Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Healthpeak Properties.
Diversification Opportunities for Urban Edge and Healthpeak Properties
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Urban and Healthpeak is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties and Urban Edge 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 Urban Edge Properties are associated (or correlated) with Healthpeak Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthpeak Properties has no effect on the direction of Urban Edge i.e., Urban Edge and Healthpeak Properties go up and down completely randomly.
Pair Corralation between Urban Edge and Healthpeak Properties
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.83 times more return on investment than Healthpeak Properties. However, Urban Edge Properties is 1.21 times less risky than Healthpeak Properties. It trades about 0.1 of its potential returns per unit of risk. Healthpeak Properties is currently generating about 0.05 per unit of risk. If you would invest 1,426 in Urban Edge Properties on September 26, 2024 and sell it today you would earn a total of 722.00 from holding Urban Edge Properties or generate 50.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Healthpeak Properties
Performance |
| Timeline |
| Urban Edge Properties |
| Healthpeak Properties |
Urban Edge and Healthpeak Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Healthpeak Properties
The main advantage of trading using opposite Urban Edge and Healthpeak Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Healthpeak 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 Healthpeak Properties will offset losses from the drop in Healthpeak Properties' long position.| Urban Edge vs. Rithm Property Trust | Urban Edge vs. Site Centers Corp | Urban Edge vs. Retail Opportunity Investments | Urban Edge vs. Inventrust Properties Corp |
| Healthpeak Properties vs. Realty Income | Healthpeak Properties vs. Park Hotels Resorts | Healthpeak Properties vs. Power REIT | Healthpeak Properties vs. Urban Edge Properties |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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