Correlation Between Bluerock Homes and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and Stifel Financial 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 Stifel Financial 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 Stifel Financial Corp, you can compare the effects of market volatilities on Bluerock Homes and Stifel Financial 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 Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and Stifel Financial.
Diversification Opportunities for Bluerock Homes and Stifel Financial
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bluerock and Stifel is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and Stifel Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial Corp 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 Stifel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stifel Financial Corp has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and Stifel Financial go up and down completely randomly.
Pair Corralation between Bluerock Homes and Stifel Financial
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the Stifel Financial. In addition to that, Bluerock Homes is 2.51 times more volatile than Stifel Financial Corp. It trades about -0.06 of its total potential returns per unit of risk. Stifel Financial Corp is currently generating about 0.17 per unit of volatility. If you would invest 2,475 in Stifel Financial Corp on September 1, 2024 and sell it today you would earn a total of 62.00 from holding Stifel Financial Corp or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluerock Homes Trust vs. Stifel Financial Corp
Performance |
| Timeline |
| Bluerock Homes Trust |
| Stifel Financial Corp |
Bluerock Homes and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and Stifel Financial
The main advantage of trading using opposite Bluerock Homes and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, Stifel Financial 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 Stifel Financial will offset losses from the drop in Stifel Financial's 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 |
| Stifel Financial vs. The Charles Schwab | Stifel Financial vs. JPMorgan Chase Co | Stifel Financial vs. Morgan Stanley | Stifel Financial vs. JPMorgan Chase Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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