Correlation Between Acres Commercial and Blackstone Mortgage
Can any of the company-specific risk be diversified away by investing in both Acres Commercial and Blackstone Mortgage 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 Acres Commercial and Blackstone Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acres Commercial Realty and Blackstone Mortgage Trust, you can compare the effects of market volatilities on Acres Commercial and Blackstone Mortgage 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 Acres Commercial with a short position of Blackstone Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acres Commercial and Blackstone Mortgage.
Diversification Opportunities for Acres Commercial and Blackstone Mortgage
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acres and Blackstone is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Acres Commercial Realty and Blackstone Mortgage Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Mortgage Trust and Acres 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 Acres Commercial Realty are associated (or correlated) with Blackstone Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Mortgage Trust has no effect on the direction of Acres Commercial i.e., Acres Commercial and Blackstone Mortgage go up and down completely randomly.
Pair Corralation between Acres Commercial and Blackstone Mortgage
Considering the 90-day investment horizon Acres Commercial Realty is expected to generate 1.03 times more return on investment than Blackstone Mortgage. However, Acres Commercial is 1.03 times more volatile than Blackstone Mortgage Trust. It trades about 0.33 of its potential returns per unit of risk. Blackstone Mortgage Trust is currently generating about 0.02 per unit of risk. If you would invest 1,512 in Acres Commercial Realty on August 27, 2024 and sell it today you would earn a total of 163.00 from holding Acres Commercial Realty or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acres Commercial Realty vs. Blackstone Mortgage Trust
Performance |
| Timeline |
| Acres Commercial Realty |
| Blackstone Mortgage Trust |
Acres Commercial and Blackstone Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acres Commercial and Blackstone Mortgage
The main advantage of trading using opposite Acres Commercial and Blackstone Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acres Commercial position performs unexpectedly, Blackstone Mortgage 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 Blackstone Mortgage will offset losses from the drop in Blackstone Mortgage's long position.| Acres Commercial vs. Blackstone Mortgage Trust | Acres Commercial vs. Omega Healthcare Investors | Acres Commercial vs. Medical Properties Trust |
| Blackstone Mortgage vs. Starwood Property Trust | Blackstone Mortgage vs. Rithm Capital Corp | Blackstone Mortgage vs. AGNC Investment Corp | Blackstone Mortgage vs. Ares Commercial Real |
Check out your portfolio center.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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets |