Correlation Between Medical Properties and AdvancedAdvT

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

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

Diversification Opportunities for Medical Properties and AdvancedAdvT

-0.81

Correlation Coefficient

Medical Properties  AdvancedAdvT

Pay attention - limited upside

The 3 months correlation between Medical and AdvancedAdvT is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and AdvancedAdvT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvancedAdvT and Medical 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 Medical Properties Trust are associated (or correlated) with AdvancedAdvT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvancedAdvT has no effect on the direction of Medical Properties i.e., Medical Properties and AdvancedAdvT go up and down completely randomly.

Pair Corralation between Medical Properties and AdvancedAdvT

Assuming the 90 days trading horizon Medical Properties Trust is expected to under-perform the AdvancedAdvT. In addition to that, Medical Properties is 1.03 times more volatile than AdvancedAdvT. It trades about -0.17 of its total potential returns per unit of risk. AdvancedAdvT is currently generating about 0.22 per unit of volatility. If you would invest  15,000  in AdvancedAdvT on April 22, 2025 and sell it today you would earn a total of  3,950  from holding AdvancedAdvT or generate 26.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Medical Properties Trust  vs.  AdvancedAdvT

Medical Properties Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Medical Properties Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

AdvancedAdvT

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AdvancedAdvT are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, AdvancedAdvT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Medical Properties and AdvancedAdvT

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

The idea behind Medical Properties Trust and AdvancedAdvT 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.