Correlation Between Healthpeak Properties and CubeSmart

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

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

Diversification Opportunities for Healthpeak Properties and CubeSmart

-0.44

Correlation Coefficient

Healthpeak Properties  CubeSmart

Very good diversification

The 3 months correlation between Healthpeak and CubeSmart is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and CubeSmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CubeSmart and Healthpeak 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 Healthpeak Properties are associated (or correlated) with CubeSmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CubeSmart has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and CubeSmart go up and down completely randomly.

Pair Corralation between Healthpeak Properties and CubeSmart

Considering the 90-day investment horizon Healthpeak Properties is expected to generate 5.42 times less return on investment than CubeSmart. In addition to that, Healthpeak Properties is 1.05 times more volatile than CubeSmart. It trades about 0.02 of its total potential returns per unit of risk. CubeSmart is currently generating about 0.1 per unit of volatility. If you would invest  3,793  in CubeSmart on April 20, 2025 and sell it today you would earn a total of  315.00  from holding CubeSmart or generate 8.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Healthpeak Properties  vs.  CubeSmart

Healthpeak Properties

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Healthpeak Properties are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Healthpeak Properties is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

CubeSmart

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CubeSmart are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental drivers, CubeSmart may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Healthpeak Properties and CubeSmart

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

The idea behind Healthpeak Properties and CubeSmart 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.