Correlation Between Bluerock Homes and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and ANTA Sports 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 ANTA Sports 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 ANTA Sports Products, you can compare the effects of market volatilities on Bluerock Homes and ANTA Sports 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 ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and ANTA Sports.
Diversification Opportunities for Bluerock Homes and ANTA Sports
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bluerock and ANTA is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products 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 ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and ANTA Sports go up and down completely randomly.
Pair Corralation between Bluerock Homes and ANTA Sports
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the ANTA Sports. But the stock apears to be less risky and, when comparing its historical volatility, Bluerock Homes Trust is 1.05 times less risky than ANTA Sports. The stock trades about -0.02 of its potential returns per unit of risk. The ANTA Sports Products is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 30,797 in ANTA Sports Products on August 30, 2024 and sell it today you would lose (5,583) from holding ANTA Sports Products or give up 18.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluerock Homes Trust vs. ANTA Sports Products
Performance |
| Timeline |
| Bluerock Homes Trust |
| ANTA Sports Products |
Bluerock Homes and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and ANTA Sports
The main advantage of trading using opposite Bluerock Homes and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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