Correlation Between Broadstone Net and Generationome Properties
Can any of the company-specific risk be diversified away by investing in both Broadstone Net and Generationome Properties 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 Broadstone Net and Generationome Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadstone Net Lease and Generationome Properties, you can compare the effects of market volatilities on Broadstone Net and Generationome Properties 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 Broadstone Net with a short position of Generationome Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadstone Net and Generationome Properties.
Diversification Opportunities for Broadstone Net and Generationome Properties
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Broadstone and Generationome is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Broadstone Net Lease and Generationome Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generationome Properties and Broadstone Net 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 Broadstone Net Lease are associated (or correlated) with Generationome Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generationome Properties has no effect on the direction of Broadstone Net i.e., Broadstone Net and Generationome Properties go up and down completely randomly.
Pair Corralation between Broadstone Net and Generationome Properties
Considering the 90-day investment horizon Broadstone Net Lease is expected to generate 0.33 times more return on investment than Generationome Properties. However, Broadstone Net Lease is 3.01 times less risky than Generationome Properties. It trades about -0.17 of its potential returns per unit of risk. Generationome Properties is currently generating about -0.09 per unit of risk. If you would invest 1,805 in Broadstone Net Lease on August 28, 2024 and sell it today you would lose (67.00) from holding Broadstone Net Lease or give up 3.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadstone Net Lease vs. Generationome Properties
Performance |
| Timeline |
| Broadstone Net Lease |
| Generationome Properties |
Broadstone Net and Generationome Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadstone Net and Generationome Properties
The main advantage of trading using opposite Broadstone Net and Generationome Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadstone Net position performs unexpectedly, Generationome Properties 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 Generationome Properties will offset losses from the drop in Generationome Properties' long position.| Broadstone Net vs. Armada Hflr Pr | Broadstone Net vs. Brightspire Capital | Broadstone Net vs. Safehold | Broadstone Net vs. Essential Properties Realty |
| Generationome Properties vs. One Liberty Properties | Generationome Properties vs. Modiv Inc | Generationome Properties vs. Armada Hflr Pr | Generationome Properties vs. Presidio Property 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |