Correlation Between Healthpeak Properties and Douglas Emmett

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Can any of the company-specific risk be diversified away by investing in both Healthpeak Properties and Douglas Emmett 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 Douglas Emmett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthpeak Properties and Douglas Emmett, you can compare the effects of market volatilities on Healthpeak Properties and Douglas Emmett 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 Douglas Emmett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthpeak Properties and Douglas Emmett.

Diversification Opportunities for Healthpeak Properties and Douglas Emmett

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between Healthpeak and Douglas is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and Douglas Emmett in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Douglas Emmett 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 Douglas Emmett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Douglas Emmett has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and Douglas Emmett go up and down completely randomly.

Pair Corralation between Healthpeak Properties and Douglas Emmett

Considering the 90-day investment horizon Healthpeak Properties is expected to generate 0.9 times more return on investment than Douglas Emmett. However, Healthpeak Properties is 1.11 times less risky than Douglas Emmett. It trades about -0.13 of its potential returns per unit of risk. Douglas Emmett is currently generating about -0.34 per unit of risk. If you would invest  1,818  in Healthpeak Properties on September 22, 2025 and sell it today you would lose (219.00) from holding Healthpeak Properties or give up 12.05% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Healthpeak Properties  vs.  Douglas Emmett

 Performance 
       Timeline  
Healthpeak Properties 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Healthpeak Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
Douglas Emmett 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Douglas Emmett has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Healthpeak Properties and Douglas Emmett Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Healthpeak Properties and Douglas Emmett

The main advantage of trading using opposite Healthpeak Properties and Douglas Emmett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthpeak Properties position performs unexpectedly, Douglas Emmett 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 Douglas Emmett will offset losses from the drop in Douglas Emmett's long position.
The idea behind Healthpeak Properties and Douglas Emmett 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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