Correlation Between Bluerock Homes and Boston Beer
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and Boston Beer 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 Boston Beer 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 Boston Beer, you can compare the effects of market volatilities on Bluerock Homes and Boston Beer 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 Boston Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and Boston Beer.
Diversification Opportunities for Bluerock Homes and Boston Beer
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluerock and Boston is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and Boston Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Beer 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 Boston Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Beer has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and Boston Beer go up and down completely randomly.
Pair Corralation between Bluerock Homes and Boston Beer
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the Boston Beer. In addition to that, Bluerock Homes is 1.27 times more volatile than Boston Beer. It trades about -0.08 of its total potential returns per unit of risk. Boston Beer is currently generating about 0.17 per unit of volatility. If you would invest 29,878 in Boston Beer on August 30, 2024 and sell it today you would earn a total of 1,490 from holding Boston Beer or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluerock Homes Trust vs. Boston Beer
Performance |
| Timeline |
| Bluerock Homes Trust |
| Boston Beer |
Bluerock Homes and Boston Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and Boston Beer
The main advantage of trading using opposite Bluerock Homes and Boston Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, Boston Beer 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 Boston Beer will offset losses from the drop in Boston Beer's long position.| Bluerock Homes vs. Re Max Holding | Bluerock Homes vs. Maui Land Pineapple | Bluerock Homes vs. Redfin Corp | Bluerock Homes vs. Real Brokerage |
| Boston Beer vs. Anheuser Busch Inbev | Boston Beer vs. Molson Coors Beverage | Boston Beer vs. Heineken NV | Boston Beer vs. Ambev SA ADR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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