Correlation Between EPR Properties and EPR Properties

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

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

Diversification Opportunities for EPR Properties and EPR Properties

0.69

Correlation Coefficient

EPR Properties  EPR Properties

Poor diversification

The 3 months correlation between EPR and EPR is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding EPR Properties and EPR Properties Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR Properties Series and EPR 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 EPR Properties are associated (or correlated) with EPR Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR Properties Series has no effect on the direction of EPR Properties i.e., EPR Properties and EPR Properties go up and down completely randomly.

Pair Corralation between EPR Properties and EPR Properties

Assuming the 90 days trading horizon EPR Properties is expected to generate 35.31 times less return on investment than EPR Properties. But when comparing it to its historical volatility, EPR Properties is 1.02 times less risky than EPR Properties. It trades about 0.0 of its potential returns per unit of risk. EPR Properties Series is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,880  in EPR Properties Series on September 2, 2024 and sell it today you would earn a total of  78.00  from holding EPR Properties Series or generate 2.71% return on investment over 90 days.

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

EPR Properties  vs.  EPR Properties Series

EPR Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EPR Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, EPR Properties is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

EPR Properties Series

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in EPR Properties Series are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, EPR Properties is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with EPR Properties and EPR Properties

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

The idea behind EPR Properties and EPR Properties Series 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.