Correlation Between Offerpad Solutions and Global Medical
Can any of the company-specific risk be diversified away by investing in both Offerpad Solutions and Global Medical 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 Offerpad Solutions and Global Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Offerpad Solutions and Global Medical REIT, you can compare the effects of market volatilities on Offerpad Solutions and Global Medical 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 Offerpad Solutions with a short position of Global Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offerpad Solutions and Global Medical.
Diversification Opportunities for Offerpad Solutions and Global Medical
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Offerpad and Global is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Offerpad Solutions and Global Medical REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Medical REIT and Offerpad Solutions 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 Offerpad Solutions are associated (or correlated) with Global Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Medical REIT has no effect on the direction of Offerpad Solutions i.e., Offerpad Solutions and Global Medical go up and down completely randomly.
Pair Corralation between Offerpad Solutions and Global Medical
Given the investment horizon of 90 days Offerpad Solutions is expected to under-perform the Global Medical. In addition to that, Offerpad Solutions is 4.82 times more volatile than Global Medical REIT. It trades about -0.22 of its total potential returns per unit of risk. Global Medical REIT is currently generating about 0.08 per unit of volatility. If you would invest 3,195 in Global Medical REIT on August 18, 2025 and sell it today you would earn a total of 78.00 from holding Global Medical REIT or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offerpad Solutions vs. Global Medical REIT
Performance |
| Timeline |
| Offerpad Solutions |
| Global Medical REIT |
Offerpad Solutions and Global Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offerpad Solutions and Global Medical
The main advantage of trading using opposite Offerpad Solutions and Global Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offerpad Solutions position performs unexpectedly, Global Medical 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 Global Medical will offset losses from the drop in Global Medical's long position.| Offerpad Solutions vs. Rafael Holdings, | Offerpad Solutions vs. Fathom Holdings | Offerpad Solutions vs. AFC Gamma | Offerpad Solutions vs. Star Holdings |
| Global Medical vs. Cherry Hill Mortgage | Global Medical vs. AFC Gamma | Global Medical vs. Lument Finance Trust | Global Medical vs. Token Communities |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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