Correlation Between LOG Commercial and Healthpeak Properties

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

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

Diversification Opportunities for LOG Commercial and Healthpeak Properties

-0.69

Correlation Coefficient

LOG Commercial  Healthpeak Properties

Excellent diversification

The 3 months correlation between LOG and Healthpeak is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding LOG Commercial Properties and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties and LOG Commercial 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 LOG Commercial Properties 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 LOG Commercial i.e., LOG Commercial and Healthpeak Properties go up and down completely randomly.

Pair Corralation between LOG Commercial and Healthpeak Properties

Assuming the 90 days trading horizon LOG Commercial Properties is expected to generate 1.36 times more return on investment than Healthpeak Properties. However, LOG Commercial is 1.36 times more volatile than Healthpeak Properties. It trades about 0.04 of its potential returns per unit of risk. Healthpeak Properties is currently generating about -0.1 per unit of risk. If you would invest  1,917  in LOG Commercial Properties on April 22, 2025 and sell it today you would earn a total of  62.00  from holding LOG Commercial Properties or generate 3.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

LOG Commercial Properties  vs.  Healthpeak Properties

LOG Commercial Properties

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LOG Commercial Properties are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, LOG Commercial 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 LOG Commercial and Healthpeak Properties

The main advantage of trading using opposite LOG Commercial and Healthpeak Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOG Commercial 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 LOG Commercial Properties 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.