Correlation Between AALLN and Sabra Healthcare
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By analyzing existing cross correlation between AALLN 475 16 MAR 52 and Sabra Healthcare REIT, you can compare the effects of market volatilities on AALLN and Sabra Healthcare 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 AALLN with a short position of Sabra Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of AALLN and Sabra Healthcare.
Diversification Opportunities for AALLN and Sabra Healthcare
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AALLN and Sabra is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding AALLN 475 16 MAR 52 and Sabra Healthcare REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Healthcare REIT and AALLN 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 AALLN 475 16 MAR 52 are associated (or correlated) with Sabra Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Healthcare REIT has no effect on the direction of AALLN i.e., AALLN and Sabra Healthcare go up and down completely randomly.
Pair Corralation between AALLN and Sabra Healthcare
Assuming the 90 days trading horizon AALLN 475 16 MAR 52 is expected to generate 0.97 times more return on investment than Sabra Healthcare. However, AALLN 475 16 MAR 52 is 1.03 times less risky than Sabra Healthcare. It trades about -0.15 of its potential returns per unit of risk. Sabra Healthcare REIT is currently generating about -0.25 per unit of risk. If you would invest 8,652 in AALLN 475 16 MAR 52 on September 13, 2024 and sell it today you would lose (376.00) from holding AALLN 475 16 MAR 52 or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
AALLN 475 16 MAR 52 vs. Sabra Healthcare REIT
Performance |
| Timeline |
| AALLN 475 16 |
| Sabra Healthcare REIT |
AALLN and Sabra Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AALLN and Sabra Healthcare
The main advantage of trading using opposite AALLN and Sabra Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AALLN position performs unexpectedly, Sabra Healthcare 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 Sabra Healthcare will offset losses from the drop in Sabra Healthcare's long position.The idea behind AALLN 475 16 MAR 52 and Sabra Healthcare REIT pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sabra Healthcare vs. Boston Properties | Sabra Healthcare vs. Douglas Emmett | Sabra Healthcare vs. Kilroy Realty Corp | Sabra Healthcare vs. Alexandria Real Estate |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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