Correlation Between Healthpeak Properties and Jones Lang

Can any of the company-specific risk be diversified away by investing in both Healthpeak Properties and Jones Lang 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 Healthpeak Properties and Jones Lang into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Healthpeak Properties and Jones Lang LaSalle, you can compare the effects of market volatilities on Healthpeak Properties and Jones Lang 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 Healthpeak Properties with a short position of Jones Lang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthpeak Properties and Jones Lang.

Diversification Opportunities for Healthpeak Properties and Jones Lang

0.27

Correlation Coefficient

Healthpeak Properties  Jones Lang

Modest diversification

The 3 months correlation between Healthpeak and Jones is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and Jones Lang LaSalle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Lang LaSalle and Healthpeak Properties 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 Healthpeak Properties are associated (or correlated) with Jones Lang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jones Lang LaSalle has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and Jones Lang go up and down completely randomly.

Pair Corralation between Healthpeak Properties and Jones Lang

Considering the 90-day investment horizon Healthpeak Properties is expected to generate 0.8 times more return on investment than Jones Lang. However, Healthpeak Properties is 1.25 times less risky than Jones Lang. It trades about -0.3 of its potential returns per unit of risk. Jones Lang LaSalle is currently generating about -0.3 per unit of risk. If you would invest  2,198  in Healthpeak Properties on September 25, 2024 and sell it today you would lose (180.00) from holding Healthpeak Properties or give up 8.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Healthpeak Properties  vs.  Jones Lang LaSalle

Healthpeak Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Healthpeak Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Jones Lang LaSalle

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jones Lang LaSalle has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Jones Lang is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Healthpeak Properties and Jones Lang

The main advantage of trading using opposite Healthpeak Properties and Jones Lang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthpeak Properties position performs unexpectedly, Jones Lang 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 Jones Lang will offset losses from the drop in Jones Lang's long position.

The idea behind Healthpeak Properties and Jones Lang LaSalle 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.