Correlation Between Bridgemarq Real and Ambase Corp
Can any of the company-specific risk be diversified away by investing in both Bridgemarq Real and Ambase Corp 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 Bridgemarq Real and Ambase Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgemarq Real Estate and Ambase Corp, you can compare the effects of market volatilities on Bridgemarq Real and Ambase Corp 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 Bridgemarq Real with a short position of Ambase Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgemarq Real and Ambase Corp.
Diversification Opportunities for Bridgemarq Real and Ambase Corp
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bridgemarq and Ambase is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bridgemarq Real Estate and Ambase Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambase Corp and Bridgemarq Real 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 Bridgemarq Real Estate are associated (or correlated) with Ambase Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambase Corp has no effect on the direction of Bridgemarq Real i.e., Bridgemarq Real and Ambase Corp go up and down completely randomly.
Pair Corralation between Bridgemarq Real and Ambase Corp
Assuming the 90 days horizon Bridgemarq Real is expected to generate 2.71 times less return on investment than Ambase Corp. But when comparing it to its historical volatility, Bridgemarq Real Estate is 3.68 times less risky than Ambase Corp. It trades about 0.1 of its potential returns per unit of risk. Ambase Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Ambase Corp on August 25, 2024 and sell it today you would earn a total of 16.00 from holding Ambase Corp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.3% |
| Values | Daily Returns |
Bridgemarq Real Estate vs. Ambase Corp
Performance |
| Timeline |
| Bridgemarq Real Estate |
| Ambase Corp |
Bridgemarq Real and Ambase Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgemarq Real and Ambase Corp
The main advantage of trading using opposite Bridgemarq Real and Ambase Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgemarq Real position performs unexpectedly, Ambase Corp 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 Ambase Corp will offset losses from the drop in Ambase Corp's long position.| Bridgemarq Real vs. Kennedy Wilson Holdings | Bridgemarq Real vs. CoStar Group | Bridgemarq Real vs. Frp Holdings Ord | Bridgemarq Real vs. IRSA Inversiones Y |
| Ambase Corp vs. Adler Group SA | Ambase Corp vs. Aztec Land Comb | Ambase Corp vs. Bridgemarq Real Estate | Ambase Corp vs. Agritek Holdings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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