Correlation Between Bluerock Homes and Veris Residential
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and Veris Residential 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 Veris Residential 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 Veris Residential, you can compare the effects of market volatilities on Bluerock Homes and Veris Residential 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 Veris Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and Veris Residential.
Diversification Opportunities for Bluerock Homes and Veris Residential
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluerock and Veris is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and Veris Residential in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veris Residential 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 Veris Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veris Residential has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and Veris Residential go up and down completely randomly.
Pair Corralation between Bluerock Homes and Veris Residential
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the Veris Residential. In addition to that, Bluerock Homes is 1.05 times more volatile than Veris Residential. It trades about -0.13 of its total potential returns per unit of risk. Veris Residential is currently generating about 0.26 per unit of volatility. If you would invest 1,698 in Veris Residential on August 27, 2024 and sell it today you would earn a total of 145.00 from holding Veris Residential or generate 8.54% 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. Veris Residential
Performance |
| Timeline |
| Bluerock Homes Trust |
| Veris Residential |
Bluerock Homes and Veris Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and Veris Residential
The main advantage of trading using opposite Bluerock Homes and Veris Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, Veris Residential 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 Veris Residential will offset losses from the drop in Veris Residential's long position.| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
| Veris Residential vs. Urban Edge Properties | Veris Residential vs. Site Centers Corp | Veris Residential vs. JBG SMITH Properties | Veris Residential vs. Nexpoint Residential Trust |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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