Correlation Between LTC Properties and PARKWAY LIFE
Can any of the company-specific risk be diversified away by investing in both LTC Properties and PARKWAY LIFE 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 LTC Properties and PARKWAY LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LTC Properties and PARKWAY LIFE REAL, you can compare the effects of market volatilities on LTC Properties and PARKWAY LIFE 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 LTC Properties with a short position of PARKWAY LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of LTC Properties and PARKWAY LIFE.
Diversification Opportunities for LTC Properties and PARKWAY LIFE
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LTC and PARKWAY is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding LTC Properties and PARKWAY LIFE REAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKWAY LIFE REAL and LTC 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 LTC Properties are associated (or correlated) with PARKWAY LIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKWAY LIFE REAL has no effect on the direction of LTC Properties i.e., LTC Properties and PARKWAY LIFE go up and down completely randomly.
Pair Corralation between LTC Properties and PARKWAY LIFE
Assuming the 90 days horizon LTC Properties is expected to generate 0.81 times more return on investment than PARKWAY LIFE. However, LTC Properties is 1.24 times less risky than PARKWAY LIFE. It trades about 0.03 of its potential returns per unit of risk. PARKWAY LIFE REAL is currently generating about -0.05 per unit of risk. If you would invest 3,052 in LTC Properties on September 3, 2025 and sell it today you would earn a total of 50.00 from holding LTC Properties or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LTC Properties vs. PARKWAY LIFE REAL
Performance |
| Timeline |
| LTC Properties |
| PARKWAY LIFE REAL |
LTC Properties and PARKWAY LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LTC Properties and PARKWAY LIFE
The main advantage of trading using opposite LTC Properties and PARKWAY LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LTC Properties position performs unexpectedly, PARKWAY LIFE 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 PARKWAY LIFE will offset losses from the drop in PARKWAY LIFE's long position.| LTC Properties vs. Keck Seng Investments | LTC Properties vs. HYATT HOTELS A | LTC Properties vs. Park Hotels Resorts | LTC Properties vs. Choice Hotels International |
| PARKWAY LIFE vs. ADDUS HOMECARE | PARKWAY LIFE vs. Rayonier Advanced Materials | PARKWAY LIFE vs. Pembina Pipeline Corp | PARKWAY LIFE vs. HAVERTY FURNITURE A |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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