Correlation Between Plaza Retail and Leveljump Healthcare

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

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

Diversification Opportunities for Plaza Retail and Leveljump Healthcare

-0.5

Correlation Coefficient

Plaza Retail  Leveljump Healthcare

Very good diversification

The 3 months correlation between Plaza and Leveljump is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT and Leveljump Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leveljump Healthcare Corp and Plaza Retail 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 Plaza Retail REIT are associated (or correlated) with Leveljump Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leveljump Healthcare Corp has no effect on the direction of Plaza Retail i.e., Plaza Retail and Leveljump Healthcare go up and down completely randomly.

Pair Corralation between Plaza Retail and Leveljump Healthcare

Assuming the 90 days trading horizon Plaza Retail is expected to generate 1778.8 times less return on investment than Leveljump Healthcare. But when comparing it to its historical volatility, Plaza Retail REIT is 10.58 times less risky than Leveljump Healthcare. It trades about 0.0 of its potential returns per unit of risk. Leveljump Healthcare Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  5.00  in Leveljump Healthcare Corp on September 6, 2025 and sell it today you would earn a total of  1.50  from holding Leveljump Healthcare Corp or generate 30.0% return on investment over 90 days.

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

Plaza Retail REIT  vs.  Leveljump Healthcare Corp

Plaza Retail REIT

Risk-Adjusted Performance

Weakest

Over the last 90 days Plaza Retail REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Plaza Retail is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Leveljump Healthcare Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Leveljump Healthcare Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal primary indicators, Leveljump Healthcare showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Plaza Retail and Leveljump Healthcare

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

The idea behind Plaza Retail REIT and Leveljump Healthcare Corp 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.