Correlation Between Global Medical and Lead Real
Can any of the company-specific risk be diversified away by investing in both Global Medical and Lead Real 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 Global Medical and Lead Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Medical REIT and Lead Real Estate, you can compare the effects of market volatilities on Global Medical and Lead Real 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 Global Medical with a short position of Lead Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Medical and Lead Real.
Diversification Opportunities for Global Medical and Lead Real
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Lead is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Global Medical REIT and Lead Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lead Real Estate and Global Medical 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 Global Medical REIT are associated (or correlated) with Lead Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lead Real Estate has no effect on the direction of Global Medical i.e., Global Medical and Lead Real go up and down completely randomly.
Pair Corralation between Global Medical and Lead Real
Given the investment horizon of 90 days Global Medical REIT is expected to generate 0.06 times more return on investment than Lead Real. However, Global Medical REIT is 17.9 times less risky than Lead Real. It trades about -0.38 of its potential returns per unit of risk. Lead Real Estate is currently generating about -0.24 per unit of risk. If you would invest 863.00 in Global Medical REIT on September 25, 2024 and sell it today you would lose (79.50) from holding Global Medical REIT or give up 9.21% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Global Medical REIT vs. Lead Real Estate
Performance |
Timeline |
Global Medical REIT |
Lead Real Estate |
Global Medical and Lead Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Medical and Lead Real
The main advantage of trading using opposite Global Medical and Lead Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Medical position performs unexpectedly, Lead Real 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 Lead Real will offset losses from the drop in Lead Real's long position.Global Medical vs. Healthpeak Properties | Global Medical vs. Ventas Inc | Global Medical vs. National Health Investors | Global Medical vs. Sabra Healthcare REIT |
Lead Real vs. Lifevantage | Lead Real vs. NH Foods Ltd | Lead Real vs. Hudson Technologies | Lead Real vs. Ecolab Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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