Correlation Between Summit Hotel and National Healthcare
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and National 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 Summit Hotel and National Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Hotel Properties and National Healthcare Properties,, you can compare the effects of market volatilities on Summit Hotel and National 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 Summit Hotel with a short position of National Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and National Healthcare.
Diversification Opportunities for Summit Hotel and National Healthcare
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Summit and National is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and National Healthcare Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Healthcare and Summit Hotel 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 Summit Hotel Properties are associated (or correlated) with National Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Healthcare has no effect on the direction of Summit Hotel i.e., Summit Hotel and National Healthcare go up and down completely randomly.
Pair Corralation between Summit Hotel and National Healthcare
Considering the 90-day investment horizon Summit Hotel Properties is expected to under-perform the National Healthcare. In addition to that, Summit Hotel is 3.51 times more volatile than National Healthcare Properties,. It trades about -0.03 of its total potential returns per unit of risk. National Healthcare Properties, is currently generating about 0.24 per unit of volatility. If you would invest 1,808 in National Healthcare Properties, on September 13, 2025 and sell it today you would earn a total of 125.00 from holding National Healthcare Properties, or generate 6.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Hotel Properties vs. National Healthcare Properties
Performance |
| Timeline |
| Summit Hotel Properties |
| National Healthcare |
Summit Hotel and National Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and National Healthcare
The main advantage of trading using opposite Summit Hotel and National Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, National 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 National Healthcare will offset losses from the drop in National Healthcare's long position.| Summit Hotel vs. CTO Realty Growth | Summit Hotel vs. Brandywine Realty Trust | Summit Hotel vs. KKR Real Estate | Summit Hotel vs. Saul Centers |
| National Healthcare vs. National Healthcare Properties, | National Healthcare vs. Invesco Mortgage Capital | National Healthcare vs. Claros Mortgage Trust | National Healthcare vs. Universal Health Realty |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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