Correlation Between Healthcare Realty and Urban Edge

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

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

Diversification Opportunities for Healthcare Realty and Urban Edge

0.79

Correlation Coefficient

Healthcare Realty  Urban Edge

Poor diversification

The 3 months correlation between Healthcare and Urban is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Realty Trust and Urban Edge Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Edge Properties and Healthcare Realty 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 Healthcare Realty Trust are associated (or correlated) with Urban Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Edge Properties has no effect on the direction of Healthcare Realty i.e., Healthcare Realty and Urban Edge go up and down completely randomly.

Pair Corralation between Healthcare Realty and Urban Edge

Allowing for the 90-day total investment horizon Healthcare Realty Trust is expected to generate 1.02 times more return on investment than Urban Edge. However, Healthcare Realty is 1.02 times more volatile than Urban Edge Properties. It trades about 0.14 of its potential returns per unit of risk. Urban Edge Properties is currently generating about 0.1 per unit of risk. If you would invest  1,490  in Healthcare Realty Trust on May 7, 2025 and sell it today you would earn a total of  205.00  from holding Healthcare Realty Trust or generate 13.76% return on investment over 90 days.

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

Healthcare Realty Trust  vs.  Urban Edge Properties

Healthcare Realty Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Healthcare Realty Trust are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Healthcare Realty reported solid returns over the last few months and may actually be approaching a breakup point.

Urban Edge Properties

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Urban Edge Properties are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Urban Edge may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Healthcare Realty and Urban Edge

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

The idea behind Healthcare Realty Trust and Urban Edge 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.