Correlation Between Bluerock Homes and SOUTHERN
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By analyzing existing cross correlation between Bluerock Homes Trust and SOUTHERN CALIF GAS, you can compare the effects of market volatilities on Bluerock Homes and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and SOUTHERN.
Diversification Opportunities for Bluerock Homes and SOUTHERN
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bluerock and SOUTHERN is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and SOUTHERN CALIF GAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF GAS 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF GAS has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and SOUTHERN go up and down completely randomly.
Pair Corralation between Bluerock Homes and SOUTHERN
Considering the 90-day investment horizon Bluerock Homes is expected to generate 5.43 times less return on investment than SOUTHERN. In addition to that, Bluerock Homes is 1.91 times more volatile than SOUTHERN CALIF GAS. It trades about 0.02 of its total potential returns per unit of risk. SOUTHERN CALIF GAS is currently generating about 0.19 per unit of volatility. If you would invest 8,399 in SOUTHERN CALIF GAS on September 12, 2024 and sell it today you would earn a total of 177.00 from holding SOUTHERN CALIF GAS or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Bluerock Homes Trust vs. SOUTHERN CALIF GAS
Performance |
| Timeline |
| Bluerock Homes Trust |
| SOUTHERN CALIF GAS |
Bluerock Homes and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and SOUTHERN
The main advantage of trading using opposite Bluerock Homes and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
| SOUTHERN vs. AEP TEX INC | SOUTHERN vs. US BANK NATIONAL | SOUTHERN vs. PayPal Holdings | SOUTHERN vs. Alphabet Inc Class C |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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