Correlation Between Healthpeak Properties and Ventas,

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

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

Diversification Opportunities for Healthpeak Properties and Ventas,

0.46

Correlation Coefficient

Healthpeak Properties  Ventas,

Very weak diversification

The 3 months correlation between Healthpeak and Ventas, is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and Ventas, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ventas, 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 Ventas,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ventas, has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and Ventas, go up and down completely randomly.

Pair Corralation between Healthpeak Properties and Ventas,

Assuming the 90 days trading horizon Healthpeak Properties is expected to under-perform the Ventas,. In addition to that, Healthpeak Properties is 24.1 times more volatile than Ventas,. It trades about -0.18 of its total potential returns per unit of risk. Ventas, is currently generating about 0.24 per unit of volatility. If you would invest  18,449  in Ventas, on October 15, 2024 and sell it today you would earn a total of  95.00  from holding Ventas, or generate 0.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Healthpeak Properties  vs.  Ventas,

Healthpeak Properties

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Healthpeak Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Healthpeak Properties is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ventas,

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ventas, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Ventas, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Healthpeak Properties and Ventas,

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

The idea behind Healthpeak Properties and Ventas, 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.