Correlation Between Air Lease and Bluerock Homes
Can any of the company-specific risk be diversified away by investing in both Air Lease and Bluerock Homes 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 Air Lease and Bluerock Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Bluerock Homes Trust, you can compare the effects of market volatilities on Air Lease and Bluerock Homes 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 Air Lease with a short position of Bluerock Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Bluerock Homes.
Diversification Opportunities for Air Lease and Bluerock Homes
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and Bluerock is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Bluerock Homes Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluerock Homes Trust and Air Lease 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 Air Lease are associated (or correlated) with Bluerock Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluerock Homes Trust has no effect on the direction of Air Lease i.e., Air Lease and Bluerock Homes go up and down completely randomly.
Pair Corralation between Air Lease and Bluerock Homes
Allowing for the 90-day total investment horizon Air Lease is expected to generate 1.04 times more return on investment than Bluerock Homes. However, Air Lease is 1.04 times more volatile than Bluerock Homes Trust. It trades about 0.37 of its potential returns per unit of risk. Bluerock Homes Trust is currently generating about -0.06 per unit of risk. If you would invest 4,435 in Air Lease on September 1, 2024 and sell it today you would earn a total of 655.00 from holding Air Lease or generate 14.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Bluerock Homes Trust
Performance |
| Timeline |
| Air Lease |
| Bluerock Homes Trust |
Air Lease and Bluerock Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Bluerock Homes
The main advantage of trading using opposite Air Lease and Bluerock Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Bluerock Homes 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 Bluerock Homes will offset losses from the drop in Bluerock Homes' long position.| Air Lease vs. McGrath RentCorp | Air Lease vs. Herc Holdings | Air Lease vs. PROG Holdings | Air Lease vs. Custom Truck One |
| Bluerock Homes vs. Re Max Holding | Bluerock Homes vs. Marcus Millichap | Bluerock Homes vs. Frp Holdings Ord | Bluerock Homes vs. Maui Land Pineapple |
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 Stocks Directory module to find actively traded stocks across global markets.
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