Correlation Between Braemar Hotels and Bridgemarq Real
Can any of the company-specific risk be diversified away by investing in both Braemar Hotels and Bridgemarq Real 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 Braemar Hotels and Bridgemarq Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braemar Hotels Resorts and Bridgemarq Real Estate, you can compare the effects of market volatilities on Braemar Hotels and Bridgemarq Real 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 Braemar Hotels with a short position of Bridgemarq Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braemar Hotels and Bridgemarq Real.
Diversification Opportunities for Braemar Hotels and Bridgemarq Real
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Braemar and Bridgemarq is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Braemar Hotels Resorts and Bridgemarq Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgemarq Real Estate and Braemar Hotels 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 Braemar Hotels Resorts are associated (or correlated) with Bridgemarq Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgemarq Real Estate has no effect on the direction of Braemar Hotels i.e., Braemar Hotels and Bridgemarq Real go up and down completely randomly.
Pair Corralation between Braemar Hotels and Bridgemarq Real
Assuming the 90 days trading horizon Braemar Hotels is expected to generate 84.21 times less return on investment than Bridgemarq Real. But when comparing it to its historical volatility, Braemar Hotels Resorts is 2.06 times less risky than Bridgemarq Real. It trades about 0.0 of its potential returns per unit of risk. Bridgemarq Real Estate is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,021 in Bridgemarq Real Estate on September 13, 2024 and sell it today you would earn a total of 25.00 from holding Bridgemarq Real Estate or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 77.89% |
| Values | Daily Returns |
Braemar Hotels Resorts vs. Bridgemarq Real Estate
Performance |
| Timeline |
| Braemar Hotels Resorts |
| Bridgemarq Real Estate |
Braemar Hotels and Bridgemarq Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braemar Hotels and Bridgemarq Real
The main advantage of trading using opposite Braemar Hotels and Bridgemarq Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braemar Hotels position performs unexpectedly, Bridgemarq Real 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 Bridgemarq Real will offset losses from the drop in Bridgemarq Real's long position.| Braemar Hotels vs. Ashford Hospitality Trust | Braemar Hotels vs. Ashford Hospitality Trust | Braemar Hotels vs. Braemar Hotels Resorts | Braemar Hotels vs. Ashford Hospitality Trust |
| Bridgemarq Real vs. Kennedy Wilson Holdings | Bridgemarq Real vs. CoStar Group | Bridgemarq Real vs. Frp Holdings Ord | Bridgemarq Real vs. IRSA Inversiones Y |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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