Correlation Between National Health and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both National Health and Tanger Factory 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 Tanger Factory 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 Tanger Factory Outlet, you can compare the effects of market volatilities on National Health and Tanger Factory 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 Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Health and Tanger Factory.
Diversification Opportunities for National Health and Tanger Factory
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and Tanger is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding National Health Investors and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet 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 Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of National Health i.e., National Health and Tanger Factory go up and down completely randomly.
Pair Corralation between National Health and Tanger Factory
Considering the 90-day investment horizon National Health is expected to generate 25.55 times less return on investment than Tanger Factory. In addition to that, National Health is 1.12 times more volatile than Tanger Factory Outlet. It trades about 0.02 of its total potential returns per unit of risk. Tanger Factory Outlet is currently generating about 0.45 per unit of volatility. If you would invest 3,319 in Tanger Factory Outlet on September 2, 2024 and sell it today you would earn a total of 378.00 from holding Tanger Factory Outlet or generate 11.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
National Health Investors vs. Tanger Factory Outlet
Performance |
Timeline |
National Health Investors |
Tanger Factory Outlet |
National Health and Tanger Factory Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National Health and Tanger Factory
The main advantage of trading using opposite National Health and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Health position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory's long position.National Health vs. Global Medical REIT | National Health vs. Healthpeak Properties | National Health vs. Ventas Inc | National Health vs. Omega Healthcare Investors |
Tanger Factory vs. Federal Realty Investment | Tanger Factory vs. National Retail Properties | Tanger Factory vs. Kimco Realty |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |