Correlation Between Equinix and Healthpeak Properties

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

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

Diversification Opportunities for Equinix and Healthpeak Properties

-0.75

Correlation Coefficient

Equinix  Healthpeak Properties

Pay attention - limited upside

The 3 months correlation between Equinix and Healthpeak is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties and Equinix 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 Equinix are associated (or correlated) with Healthpeak Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthpeak Properties has no effect on the direction of Equinix i.e., Equinix and Healthpeak Properties go up and down completely randomly.

Pair Corralation between Equinix and Healthpeak Properties

Given the investment horizon of 90 days Equinix is expected to under-perform the Healthpeak Properties. In addition to that, Equinix is 1.31 times more volatile than Healthpeak Properties. It trades about -0.05 of its total potential returns per unit of risk. Healthpeak Properties is currently generating about -0.01 per unit of volatility. If you would invest  1,754  in Healthpeak Properties on April 30, 2025 and sell it today you would lose (28.00) from holding Healthpeak Properties or give up 1.6% of portfolio value over 90 days.

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

Equinix  vs.  Healthpeak Properties

Equinix

Risk-Adjusted Performance

Very Weak

Over the last 90 days Equinix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Healthpeak Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Healthpeak Properties has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with Equinix and Healthpeak Properties

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

The idea behind Equinix and Healthpeak Properties 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.