Correlation Between National Health and Innovative Industrial
Can any of the company-specific risk be diversified away by investing in both National Health and Innovative Industrial 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 National Health and Innovative Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Health Investors and Innovative Industrial Properties, you can compare the effects of market volatilities on National Health and Innovative Industrial 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 National Health with a short position of Innovative Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Health and Innovative Industrial.
Diversification Opportunities for National Health and Innovative Industrial
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Innovative is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding National Health Investors and Innovative Industrial Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Industrial and National Health 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 National Health Investors are associated (or correlated) with Innovative Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Industrial has no effect on the direction of National Health i.e., National Health and Innovative Industrial go up and down completely randomly.
Pair Corralation between National Health and Innovative Industrial
Considering the 90-day investment horizon National Health Investors is expected to generate 0.41 times more return on investment than Innovative Industrial. However, National Health Investors is 2.41 times less risky than Innovative Industrial. It trades about 0.15 of its potential returns per unit of risk. Innovative Industrial Properties is currently generating about 0.06 per unit of risk. If you would invest 7,107 in National Health Investors on June 2, 2025 and sell it today you would earn a total of 722.00 from holding National Health Investors or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Health Investors vs. Innovative Industrial Properti
Performance |
| Timeline |
| National Health Investors |
| Innovative Industrial |
National Health and Innovative Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Health and Innovative Industrial
The main advantage of trading using opposite National Health and Innovative Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Health position performs unexpectedly, Innovative Industrial 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 Innovative Industrial will offset losses from the drop in Innovative Industrial's long position.| National Health vs. Sabra Healthcare REIT | National Health vs. Healthcare Realty Trust | National Health vs. Global Medical REIT | National Health vs. Universal Health Realty |
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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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