Correlation Between Vornado Realty and Medical Properties
Can any of the company-specific risk be diversified away by investing in both Vornado Realty and Medical 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 Vornado Realty and Medical Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vornado Realty Trust and Medical Properties Trust, you can compare the effects of market volatilities on Vornado Realty and Medical 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 Vornado Realty with a short position of Medical Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vornado Realty and Medical Properties.
Diversification Opportunities for Vornado Realty and Medical Properties
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vornado and Medical is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Vornado Realty Trust and Medical Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Properties Trust and Vornado Realty 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 Vornado Realty Trust are associated (or correlated) with Medical Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Properties Trust has no effect on the direction of Vornado Realty i.e., Vornado Realty and Medical Properties go up and down completely randomly.
Pair Corralation between Vornado Realty and Medical Properties
Considering the 90-day investment horizon Vornado Realty Trust is expected to generate 0.61 times more return on investment than Medical Properties. However, Vornado Realty Trust is 1.65 times less risky than Medical Properties. It trades about 0.07 of its potential returns per unit of risk. Medical Properties Trust is currently generating about -0.06 per unit of risk. If you would invest 4,192 in Vornado Realty Trust on September 3, 2024 and sell it today you would earn a total of 113.00 from holding Vornado Realty Trust or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vornado Realty Trust vs. Medical Properties Trust
Performance |
| Timeline |
| Vornado Realty Trust |
| Medical Properties Trust |
Vornado Realty and Medical Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vornado Realty and Medical Properties
The main advantage of trading using opposite Vornado Realty and Medical Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vornado Realty position performs unexpectedly, Medical 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 Medical Properties will offset losses from the drop in Medical Properties' long position.| Vornado Realty vs. Boston Properties | Vornado Realty vs. Alexandria Real Estate | Vornado Realty vs. Brandywine Realty Trust | Vornado Realty vs. Hudson Pacific Properties |
| Medical Properties vs. Sabra Healthcare REIT | Medical Properties vs. LTC Properties | Medical Properties vs. Healthpeak Properties | Medical Properties vs. National Health Investors |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |