Correlation Between Equinix and Healthpeak Properties
Can any of the company-specific risk be diversified away by investing in both Equinix and Healthpeak 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 Equinix and Healthpeak Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinix and Healthpeak Properties, you can compare the effects of market volatilities on Equinix and Healthpeak 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 Equinix with a short position of Healthpeak Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinix and Healthpeak Properties.
Diversification Opportunities for Equinix and Healthpeak Properties
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Equinix and Healthpeak is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties and Equinix 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 Equinix are associated (or correlated) with Healthpeak Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthpeak Properties has no effect on the direction of Equinix i.e., Equinix and Healthpeak Properties go up and down completely randomly.
Pair Corralation between Equinix and Healthpeak Properties
Given the investment horizon of 90 days Equinix is expected to generate 1.14 times more return on investment than Healthpeak Properties. However, Equinix is 1.14 times more volatile than Healthpeak Properties. It trades about 0.0 of its potential returns per unit of risk. Healthpeak Properties is currently generating about -0.04 per unit of risk. If you would invest 81,422 in Equinix on June 6, 2025 and sell it today you would lose (4,266) from holding Equinix or give up 5.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinix vs. Healthpeak Properties
Performance |
| Timeline |
| Equinix |
| Healthpeak Properties |
Equinix and Healthpeak Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinix and Healthpeak Properties
The main advantage of trading using opposite Equinix and Healthpeak Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinix position performs unexpectedly, Healthpeak 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 Healthpeak Properties will offset losses from the drop in Healthpeak Properties' long position.| Equinix vs. Crown Castle | Equinix vs. American Tower Corp | Equinix vs. Iron Mountain Incorporated | Equinix vs. Hannon Armstrong Sustainable |
| Healthpeak Properties vs. CareTrust REIT | Healthpeak Properties vs. Eerly Govt Ppty | Healthpeak Properties vs. Global Medical REIT | Healthpeak Properties vs. Healthcare Realty Trust |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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