Correlation Between National Health and Lexington Realty
Can any of the company-specific risk be diversified away by investing in both National Health and Lexington Realty 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 National Health and Lexington Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Health Investors and Lexington Realty Trust, you can compare the effects of market volatilities on National Health and Lexington Realty 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 National Health with a short position of Lexington Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Health and Lexington Realty.
Diversification Opportunities for National Health and Lexington Realty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Lexington is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Health Investors and Lexington Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lexington Realty Trust and National Health 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 National Health Investors are associated (or correlated) with Lexington Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lexington Realty Trust has no effect on the direction of National Health i.e., National Health and Lexington Realty go up and down completely randomly.
Pair Corralation between National Health and Lexington Realty
If you would invest 0.00 in Lexington Realty Trust on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Lexington Realty Trust or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
National Health Investors vs. Lexington Realty Trust
Performance |
| Timeline |
| National Health Investors |
| Lexington Realty Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National Health and Lexington Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Health and Lexington Realty
The main advantage of trading using opposite National Health and Lexington Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Health position performs unexpectedly, Lexington Realty 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 Lexington Realty will offset losses from the drop in Lexington Realty's long position.| National Health vs. COSTCO WHOLESALE CDR | National Health vs. Titan Machinery | National Health vs. ALEFARM BREWING DK 05 | National Health vs. MARKET VECTR RETAIL |
| Lexington Realty vs. Insurance Australia Group | Lexington Realty vs. CDL INVESTMENT | Lexington Realty vs. Goosehead Insurance | Lexington Realty vs. Ping An Insurance |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |