Correlation Between Capital Clean and Sabra Healthcare

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Can any of the company-specific risk be diversified away by investing in both Capital Clean and Sabra 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 Capital Clean and Sabra Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Clean Energy and Sabra Healthcare REIT, you can compare the effects of market volatilities on Capital Clean and Sabra 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 Capital Clean with a short position of Sabra Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and Sabra Healthcare.

Diversification Opportunities for Capital Clean and Sabra Healthcare

-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between Capital and Sabra is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy and Sabra Healthcare REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Healthcare REIT and Capital Clean 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 Capital Clean Energy are associated (or correlated) with Sabra Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Healthcare REIT has no effect on the direction of Capital Clean i.e., Capital Clean and Sabra Healthcare go up and down completely randomly.

Pair Corralation between Capital Clean and Sabra Healthcare

Given the investment horizon of 90 days Capital Clean Energy is expected to under-perform the Sabra Healthcare. In addition to that, Capital Clean is 2.22 times more volatile than Sabra Healthcare REIT. It trades about 0.0 of its total potential returns per unit of risk. Sabra Healthcare REIT is currently generating about 0.03 per unit of volatility. If you would invest  1,882  in Sabra Healthcare REIT on September 11, 2025 and sell it today you would earn a total of  42.50  from holding Sabra Healthcare REIT or generate 2.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Capital Clean Energy  vs.  Sabra Healthcare REIT

 Performance 
       Timeline  
Capital Clean Energy 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Capital Clean Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Capital Clean is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
Sabra Healthcare REIT 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sabra Healthcare REIT are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Sabra Healthcare is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Capital Clean and Sabra Healthcare Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Capital Clean and Sabra Healthcare

The main advantage of trading using opposite Capital Clean and Sabra Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Clean position performs unexpectedly, Sabra 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 Sabra Healthcare will offset losses from the drop in Sabra Healthcare's long position.
The idea behind Capital Clean Energy and Sabra Healthcare REIT 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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