Correlation Between American Healthcare and Uniti

Can any of the company-specific risk be diversified away by investing in both American Healthcare and Uniti 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 American Healthcare and Uniti into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between American Healthcare REIT, and Uniti Group, you can compare the effects of market volatilities on American Healthcare and Uniti 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 American Healthcare with a short position of Uniti. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Healthcare and Uniti.

Diversification Opportunities for American Healthcare and Uniti

0.35

Correlation Coefficient

American Healthcare  Uniti

Weak diversification

The 3 months correlation between American and Uniti is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding American Healthcare REIT, and Uniti Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniti Group and American Healthcare 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 American Healthcare REIT, are associated (or correlated) with Uniti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniti Group has no effect on the direction of American Healthcare i.e., American Healthcare and Uniti go up and down completely randomly.

Pair Corralation between American Healthcare and Uniti

Considering the 90-day investment horizon American Healthcare is expected to generate 3.35 times less return on investment than Uniti. But when comparing it to its historical volatility, American Healthcare REIT, is 5.11 times less risky than Uniti. It trades about 0.21 of its potential returns per unit of risk. Uniti Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  435.00  in Uniti Group on May 7, 2025 and sell it today you would earn a total of  322.00  from holding Uniti Group or generate 74.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

American Healthcare REIT,  vs.  Uniti Group

American Healthcare REIT,

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in American Healthcare REIT, are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical indicators, American Healthcare reported solid returns over the last few months and may actually be approaching a breakup point.

Uniti Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Uniti Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward indicators, Uniti unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with American Healthcare and Uniti

The main advantage of trading using opposite American Healthcare and Uniti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Healthcare position performs unexpectedly, Uniti 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 Uniti will offset losses from the drop in Uniti's long position.

The idea behind American Healthcare REIT, and Uniti Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.