Correlation Between Healthpeak Properties and CM Hospitalar

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

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

Diversification Opportunities for Healthpeak Properties and CM Hospitalar

0.26

Correlation Coefficient

Healthpeak Properties  CM Hospitalar

Modest diversification

The 3 months correlation between Healthpeak and VVEO3 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and CM Hospitalar SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM Hospitalar SA 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 CM Hospitalar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM Hospitalar SA has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and CM Hospitalar go up and down completely randomly.

Pair Corralation between Healthpeak Properties and CM Hospitalar

Assuming the 90 days trading horizon Healthpeak Properties is expected to generate 0.22 times more return on investment than CM Hospitalar. However, Healthpeak Properties is 4.65 times less risky than CM Hospitalar. It trades about 0.13 of its potential returns per unit of risk. CM Hospitalar SA is currently generating about -0.04 per unit of risk. If you would invest  12,252  in Healthpeak Properties on September 15, 2024 and sell it today you would earn a total of  1,060  from holding Healthpeak Properties or generate 8.65% return on investment over 90 days.

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

Healthpeak Properties  vs.  CM Hospitalar SA

Healthpeak Properties

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Healthpeak Properties are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Healthpeak Properties may actually be approaching a critical reversion point that can send shares even higher in January 2025.

CM Hospitalar SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CM Hospitalar SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Healthpeak Properties and CM Hospitalar

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

The idea behind Healthpeak Properties and CM Hospitalar SA 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.