Correlation Between Bluerock Homes and Opendoor Technologies
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and Opendoor Technologies 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 Opendoor Technologies 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 Opendoor Technologies, you can compare the effects of market volatilities on Bluerock Homes and Opendoor Technologies 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 Opendoor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and Opendoor Technologies.
Diversification Opportunities for Bluerock Homes and Opendoor Technologies
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluerock and Opendoor is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and Opendoor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opendoor Technologies 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 Opendoor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opendoor Technologies has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and Opendoor Technologies go up and down completely randomly.
Pair Corralation between Bluerock Homes and Opendoor Technologies
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the Opendoor Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Bluerock Homes Trust is 2.5 times less risky than Opendoor Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Opendoor Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 97.00 in Opendoor Technologies on September 14, 2024 and sell it today you would earn a total of 99.00 from holding Opendoor Technologies or generate 102.06% 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. Opendoor Technologies
Performance |
| Timeline |
| Bluerock Homes Trust |
| Opendoor Technologies |
Bluerock Homes and Opendoor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and Opendoor Technologies
The main advantage of trading using opposite Bluerock Homes and Opendoor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, Opendoor Technologies 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 Opendoor Technologies will offset losses from the drop in Opendoor Technologies' long position.| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
| Opendoor Technologies vs. eXp World Holdings | Opendoor Technologies vs. Offerpad Solutions | Opendoor Technologies vs. Re Max Holding | Opendoor Technologies vs. Anywhere Real Estate |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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