Correlation Between Bluerock Homes and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and Duluth Holdings 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 Duluth Holdings 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 Duluth Holdings, you can compare the effects of market volatilities on Bluerock Homes and Duluth Holdings 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 Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and Duluth Holdings.
Diversification Opportunities for Bluerock Homes and Duluth Holdings
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bluerock and Duluth is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings 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 Duluth Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duluth Holdings has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and Duluth Holdings go up and down completely randomly.
Pair Corralation between Bluerock Homes and Duluth Holdings
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the Duluth Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Bluerock Homes Trust is 1.45 times less risky than Duluth Holdings. The stock trades about -0.06 of its potential returns per unit of risk. The Duluth Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 376.00 in Duluth Holdings on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Duluth Holdings or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluerock Homes Trust vs. Duluth Holdings
Performance |
| Timeline |
| Bluerock Homes Trust |
| Duluth Holdings |
Bluerock Homes and Duluth Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and Duluth Holdings
The main advantage of trading using opposite Bluerock Homes and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, Duluth Holdings 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 Duluth Holdings will offset losses from the drop in Duluth Holdings' 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 |
| Duluth Holdings vs. Capri Holdings | Duluth Holdings vs. Movado Group | Duluth Holdings vs. Tapestry | Duluth Holdings vs. Brilliant Earth Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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