Correlation Between Urban Edge and Universal Health
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Universal Health 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 Universal Health 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 Universal Health Realty, you can compare the effects of market volatilities on Urban Edge and Universal Health 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 Universal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Universal Health.
Diversification Opportunities for Urban Edge and Universal Health
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Urban and Universal is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Universal Health Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Health Realty 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 Universal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Health Realty has no effect on the direction of Urban Edge i.e., Urban Edge and Universal Health go up and down completely randomly.
Pair Corralation between Urban Edge and Universal Health
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.94 times more return on investment than Universal Health. However, Urban Edge Properties is 1.07 times less risky than Universal Health. It trades about 0.09 of its potential returns per unit of risk. Universal Health Realty is currently generating about 0.0 per unit of risk. If you would invest 1,402 in Urban Edge Properties on August 24, 2024 and sell it today you would earn a total of 893.00 from holding Urban Edge Properties or generate 63.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Universal Health Realty
Performance |
| Timeline |
| Urban Edge Properties |
| Universal Health Realty |
Urban Edge and Universal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Universal Health
The main advantage of trading using opposite Urban Edge and Universal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Universal Health 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 Universal Health will offset losses from the drop in Universal Health's long position.| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
| Universal Health vs. Healthcare Realty Trust | Universal Health vs. Healthpeak Properties | Universal Health vs. Sabra Healthcare REIT | Universal Health vs. Community Healthcare Trust |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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