Correlation Between Bluerock Homes and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and Kite Realty 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 Kite Realty 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 Kite Realty Group, you can compare the effects of market volatilities on Bluerock Homes and Kite Realty 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 Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and Kite Realty.
Diversification Opportunities for Bluerock Homes and Kite Realty
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bluerock and Kite is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group 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 Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and Kite Realty go up and down completely randomly.
Pair Corralation between Bluerock Homes and Kite Realty
Considering the 90-day investment horizon Bluerock Homes Trust is expected to generate 2.23 times more return on investment than Kite Realty. However, Bluerock Homes is 2.23 times more volatile than Kite Realty Group. It trades about 0.02 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.03 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluerock Homes Trust vs. Kite Realty Group
Performance |
| Timeline |
| Bluerock Homes Trust |
| Kite Realty Group |
Bluerock Homes and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and Kite Realty
The main advantage of trading using opposite Bluerock Homes and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, Kite Realty 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 Kite Realty will offset losses from the drop in Kite Realty's long position.| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Urban Edge Properties | Kite Realty vs. Acadia Realty Trust |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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