Correlation Between Bridgemarq Real and CoStar
Can any of the company-specific risk be diversified away by investing in both Bridgemarq Real and CoStar 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 CoStar 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 CoStar Group, you can compare the effects of market volatilities on Bridgemarq Real and CoStar 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 CoStar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgemarq Real and CoStar.
Diversification Opportunities for Bridgemarq Real and CoStar
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bridgemarq and CoStar is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bridgemarq Real Estate and CoStar Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoStar Group 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 CoStar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoStar Group has no effect on the direction of Bridgemarq Real i.e., Bridgemarq Real and CoStar go up and down completely randomly.
Pair Corralation between Bridgemarq Real and CoStar
Assuming the 90 days horizon Bridgemarq Real Estate is expected to generate 3.26 times more return on investment than CoStar. However, Bridgemarq Real is 3.26 times more volatile than CoStar Group. It trades about 0.04 of its potential returns per unit of risk. CoStar Group is currently generating about 0.01 per unit of risk. If you would invest 801.00 in Bridgemarq Real Estate on August 25, 2024 and sell it today you would earn a total of 297.00 from holding Bridgemarq Real Estate or generate 37.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.87% |
| Values | Daily Returns |
Bridgemarq Real Estate vs. CoStar Group
Performance |
| Timeline |
| Bridgemarq Real Estate |
| CoStar Group |
Bridgemarq Real and CoStar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgemarq Real and CoStar
The main advantage of trading using opposite Bridgemarq Real and CoStar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgemarq Real position performs unexpectedly, CoStar 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 CoStar will offset losses from the drop in CoStar'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 |
| CoStar vs. Jones Lang LaSalle | CoStar vs. Cushman Wakefield plc | CoStar vs. Colliers International Group | CoStar vs. Newmark Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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