Correlation Between Tuxis and Healthpeak Properties

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

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

Diversification Opportunities for Tuxis and Healthpeak Properties

-0.55

Correlation Coefficient

Tuxis  Healthpeak Properties

Excellent diversification

The 3 months correlation between Tuxis and Healthpeak is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Tuxis and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties and Tuxis 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 Tuxis 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 Tuxis i.e., Tuxis and Healthpeak Properties go up and down completely randomly.

Pair Corralation between Tuxis and Healthpeak Properties

Given the investment horizon of 90 days Tuxis is expected to generate 2.6 times more return on investment than Healthpeak Properties. However, Tuxis is 2.6 times more volatile than Healthpeak Properties. It trades about 0.22 of its potential returns per unit of risk. Healthpeak Properties is currently generating about -0.17 per unit of risk. If you would invest  200.00  in Tuxis on September 18, 2025 and sell it today you would earn a total of  35.00  from holding Tuxis or generate 17.5% return on investment over 90 days.

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

Tuxis  vs.  Healthpeak Properties

Tuxis

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tuxis are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Tuxis unveiled solid returns over the last few months and may actually be approaching a breakup point.

Healthpeak Properties

Risk-Adjusted Performance

Weakest

Over the last 90 days Healthpeak Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Tuxis and Healthpeak Properties

The main advantage of trading using opposite Tuxis and Healthpeak Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuxis 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 Tuxis 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.