Correlation Between Bluerock Homes and Zedge
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and Zedge 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 Zedge 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 Zedge Inc, you can compare the effects of market volatilities on Bluerock Homes and Zedge 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 Zedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and Zedge.
Diversification Opportunities for Bluerock Homes and Zedge
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bluerock and Zedge is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and Zedge Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedge Inc 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 Zedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedge Inc has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and Zedge go up and down completely randomly.
Pair Corralation between Bluerock Homes and Zedge
Considering the 90-day investment horizon Bluerock Homes Trust is expected to generate 0.54 times more return on investment than Zedge. However, Bluerock Homes Trust is 1.84 times less risky than Zedge. It trades about 0.02 of its potential returns per unit of risk. Zedge Inc is currently generating about -0.07 per unit of risk. If you would invest 1,425 in Bluerock Homes Trust on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Bluerock Homes Trust or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluerock Homes Trust vs. Zedge Inc
Performance |
| Timeline |
| Bluerock Homes Trust |
| Zedge Inc |
Bluerock Homes and Zedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and Zedge
The main advantage of trading using opposite Bluerock Homes and Zedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, Zedge 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 Zedge will offset losses from the drop in Zedge's long position.| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
| Zedge vs. Twilio Inc | Zedge vs. Meta Platforms | Zedge vs. Alphabet Inc Class C | Zedge vs. Alphabet Inc Class A |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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