Correlation Between Bluerock Homes and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and National CineMedia 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 National CineMedia 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 National CineMedia, you can compare the effects of market volatilities on Bluerock Homes and National CineMedia 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 National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and National CineMedia.
Diversification Opportunities for Bluerock Homes and National CineMedia
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluerock and National is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia 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 National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and National CineMedia go up and down completely randomly.
Pair Corralation between Bluerock Homes and National CineMedia
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the National CineMedia. But the stock apears to be less risky and, when comparing its historical volatility, Bluerock Homes Trust is 3.08 times less risky than National CineMedia. The stock trades about -0.02 of its potential returns per unit of risk. The National CineMedia is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 390.00 in National CineMedia on September 4, 2024 and sell it today you would earn a total of 340.00 from holding National CineMedia or generate 87.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluerock Homes Trust vs. National CineMedia
Performance |
| Timeline |
| Bluerock Homes Trust |
| National CineMedia |
Bluerock Homes and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and National CineMedia
The main advantage of trading using opposite Bluerock Homes and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia's long position.| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Glory Star New | National CineMedia vs. Impact Fusion International |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |