Correlation Between Bluerock Homes and BCE
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and BCE 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 BCE 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 BCE Inc, you can compare the effects of market volatilities on Bluerock Homes and BCE 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 BCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and BCE.
Diversification Opportunities for Bluerock Homes and BCE
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bluerock and BCE is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and BCE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE Inc 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 BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and BCE go up and down completely randomly.
Pair Corralation between Bluerock Homes and BCE
Considering the 90-day investment horizon Bluerock Homes Trust is expected to generate 1.48 times more return on investment than BCE. However, Bluerock Homes is 1.48 times more volatile than BCE Inc. It trades about 0.02 of its potential returns per unit of risk. BCE Inc is currently generating about -0.27 per unit of risk. If you would invest 1,405 in Bluerock Homes Trust on September 12, 2024 and sell it today you would earn a total of 25.00 from holding Bluerock Homes Trust or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluerock Homes Trust vs. BCE Inc
Performance |
| Timeline |
| Bluerock Homes Trust |
| BCE Inc |
Bluerock Homes and BCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and BCE
The main advantage of trading using opposite Bluerock Homes and BCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, BCE 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 BCE will offset losses from the drop in BCE's 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |