Correlation Between Fundo Investimento and Healthpeak Properties

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

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

Diversification Opportunities for Fundo Investimento and Healthpeak Properties

-0.25

Correlation Coefficient

Fundo Investimento  Healthpeak Properties

Very good diversification

The 3 months correlation between Fundo and Healthpeak is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fundo Investimento Imobiliario and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties and Fundo Investimento 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 Fundo Investimento Imobiliario are associated (or correlated) with Healthpeak Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthpeak Properties has no effect on the direction of Fundo Investimento i.e., Fundo Investimento and Healthpeak Properties go up and down completely randomly.

Pair Corralation between Fundo Investimento and Healthpeak Properties

Assuming the 90 days trading horizon Fundo Investimento Imobiliario is expected to under-perform the Healthpeak Properties. In addition to that, Fundo Investimento is 1.1 times more volatile than Healthpeak Properties. It trades about -0.03 of its total potential returns per unit of risk. Healthpeak Properties is currently generating about 0.07 per unit of volatility. If you would invest  11,896  in Healthpeak Properties on October 6, 2024 and sell it today you would earn a total of  623.00  from holding Healthpeak Properties or generate 5.24% return on investment over 90 days.

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

Fundo Investimento Imobiliario  vs.  Healthpeak Properties

Fundo Investimento

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fundo Investimento Imobiliario has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong essential indicators, Fundo Investimento is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Healthpeak Properties

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Healthpeak Properties are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Fundo Investimento and Healthpeak Properties

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

The idea behind Fundo Investimento Imobiliario and Healthpeak Properties 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.