Correlation Between CVC Brasil and Healthpeak Properties

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

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

Diversification Opportunities for CVC Brasil and Healthpeak Properties

-0.44

Correlation Coefficient

CVC Brasil  Healthpeak Properties

Very good diversification

The 3 months correlation between CVC and Healthpeak is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CVC Brasil Operadora and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties and CVC Brasil 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 CVC Brasil Operadora 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 CVC Brasil i.e., CVC Brasil and Healthpeak Properties go up and down completely randomly.

Pair Corralation between CVC Brasil and Healthpeak Properties

Assuming the 90 days trading horizon CVC Brasil Operadora is expected to generate 2.84 times more return on investment than Healthpeak Properties. However, CVC Brasil is 2.84 times more volatile than Healthpeak Properties. It trades about 0.01 of its potential returns per unit of risk. Healthpeak Properties is currently generating about -0.11 per unit of risk. If you would invest  233.00  in CVC Brasil Operadora on April 23, 2025 and sell it today you would lose (2.00) from holding CVC Brasil Operadora or give up 0.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.16%
Values	Daily Returns

CVC Brasil Operadora  vs.  Healthpeak Properties

CVC Brasil Operadora

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CVC Brasil Operadora are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CVC Brasil is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private 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. Despite latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with CVC Brasil and Healthpeak Properties

The main advantage of trading using opposite CVC Brasil and Healthpeak Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVC Brasil 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 CVC Brasil Operadora 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.