Correlation Between Alexanders and American Healthcare
Can any of the company-specific risk be diversified away by investing in both Alexanders and American Healthcare 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 Alexanders and American Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alexanders and American Healthcare REIT,, you can compare the effects of market volatilities on Alexanders and American Healthcare 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 Alexanders with a short position of American Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexanders and American Healthcare.
Diversification Opportunities for Alexanders and American Healthcare
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alexanders and American is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Alexanders and American Healthcare REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Healthcare REIT, and Alexanders 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 Alexanders are associated (or correlated) with American Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Healthcare REIT, has no effect on the direction of Alexanders i.e., Alexanders and American Healthcare go up and down completely randomly.
Pair Corralation between Alexanders and American Healthcare
Considering the 90-day investment horizon Alexanders is expected to under-perform the American Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Alexanders is 1.1 times less risky than American Healthcare. The stock trades about -0.15 of its potential returns per unit of risk. The American Healthcare REIT, is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,616 in American Healthcare REIT, on September 26, 2024 and sell it today you would earn a total of 196.00 from holding American Healthcare REIT, or generate 7.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Alexanders vs. American Healthcare REIT,
Performance |
Timeline |
Alexanders |
American Healthcare REIT, |
Alexanders and American Healthcare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alexanders and American Healthcare
The main advantage of trading using opposite Alexanders and American Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexanders position performs unexpectedly, American Healthcare 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 American Healthcare will offset losses from the drop in American Healthcare's long position.Alexanders vs. Saul Centers | Alexanders vs. Urban Edge Properties | Alexanders vs. Rithm Property Trust | Alexanders vs. Site Centers Corp |
American Healthcare vs. Realty Income | American Healthcare vs. Park Hotels Resorts | American Healthcare vs. Power REIT | American Healthcare vs. Urban Edge Properties |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |