Correlation Between Bluerock Homes and Stepstone
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and Stepstone 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 Stepstone 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 Stepstone Group, you can compare the effects of market volatilities on Bluerock Homes and Stepstone 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 Stepstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and Stepstone.
Diversification Opportunities for Bluerock Homes and Stepstone
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bluerock and Stepstone is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and Stepstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepstone 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 Stepstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepstone Group has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and Stepstone go up and down completely randomly.
Pair Corralation between Bluerock Homes and Stepstone
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the Stepstone. In addition to that, Bluerock Homes is 1.15 times more volatile than Stepstone Group. It trades about -0.02 of its total potential returns per unit of risk. Stepstone Group is currently generating about 0.09 per unit of volatility. If you would invest 2,728 in Stepstone Group on August 30, 2024 and sell it today you would earn a total of 3,876 from holding Stepstone Group or generate 142.08% 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. Stepstone Group
Performance |
| Timeline |
| Bluerock Homes Trust |
| Stepstone Group |
Bluerock Homes and Stepstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and Stepstone
The main advantage of trading using opposite Bluerock Homes and Stepstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, Stepstone 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 Stepstone will offset losses from the drop in Stepstone's long position.| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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