Correlation Between Bluerock Homes and Air Lease
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and Air Lease 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 Bluerock Homes and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluerock Homes Trust and Air Lease, you can compare the effects of market volatilities on Bluerock Homes and Air Lease 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 Bluerock Homes with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and Air Lease.
Diversification Opportunities for Bluerock Homes and Air Lease
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluerock and Air is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and Bluerock Homes 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 Bluerock Homes Trust are associated (or correlated) with Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and Air Lease go up and down completely randomly.
Pair Corralation between Bluerock Homes and Air Lease
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the Air Lease. But the stock apears to be less risky and, when comparing its historical volatility, Bluerock Homes Trust is 1.04 times less risky than Air Lease. The stock trades about -0.06 of its potential returns per unit of risk. The Air Lease is currently generating about 0.37 of returns per unit of risk over similar time horizon. 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 |
Bluerock Homes Trust vs. Air Lease
Performance |
| Timeline |
| Bluerock Homes Trust |
| Air Lease |
Bluerock Homes and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and Air Lease
The main advantage of trading using opposite Bluerock Homes and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease's long position.| Bluerock Homes vs. Re Max Holding | Bluerock Homes vs. Marcus Millichap | Bluerock Homes vs. Frp Holdings Ord | Bluerock Homes vs. Maui Land Pineapple |
| Air Lease vs. McGrath RentCorp | Air Lease vs. Herc Holdings | Air Lease vs. PROG Holdings | Air Lease vs. Custom Truck One |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |