Correlation Between Capital Senior and Brookdale Senior
Can any of the company-specific risk be diversified away by investing in both Capital Senior and Brookdale Senior 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 Capital Senior and Brookdale Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Senior Living and Brookdale Senior Living, you can compare the effects of market volatilities on Capital Senior and Brookdale Senior 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 Capital Senior with a short position of Brookdale Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Senior and Brookdale Senior.
Diversification Opportunities for Capital Senior and Brookdale Senior
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and Brookdale is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capital Senior Living and Brookdale Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookdale Senior Living and Capital Senior 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 Capital Senior Living are associated (or correlated) with Brookdale Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookdale Senior Living has no effect on the direction of Capital Senior i.e., Capital Senior and Brookdale Senior go up and down completely randomly.
Pair Corralation between Capital Senior and Brookdale Senior
If you would invest 568.00 in Brookdale Senior Living on January 26, 2024 and sell it today you would earn a total of 107.00 from holding Brookdale Senior Living or generate 18.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Capital Senior Living vs. Brookdale Senior Living
Performance |
| Timeline |
| Capital Senior Living |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brookdale Senior Living |
Capital Senior and Brookdale Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Senior and Brookdale Senior
The main advantage of trading using opposite Capital Senior and Brookdale Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Senior position performs unexpectedly, Brookdale Senior 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 Brookdale Senior will offset losses from the drop in Brookdale Senior's long position.| Capital Senior vs. Abits Group | Capital Senior vs. Titan International | Capital Senior vs. ChampionX | Capital Senior vs. Innovid Corp |
| Brookdale Senior vs. The Ensign Group | Brookdale Senior vs. Community Health Systems | Brookdale Senior vs. National HealthCare | Brookdale Senior vs. Mednax Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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