Correlation Between Broadmark Realty and Blackstone Mortgage
Can any of the company-specific risk be diversified away by investing in both Broadmark Realty and Blackstone Mortgage 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 Broadmark Realty and Blackstone Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadmark Realty Capital and Blackstone Mortgage Trust, you can compare the effects of market volatilities on Broadmark Realty and Blackstone Mortgage 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 Broadmark Realty with a short position of Blackstone Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadmark Realty and Blackstone Mortgage.
Diversification Opportunities for Broadmark Realty and Blackstone Mortgage
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Broadmark and Blackstone is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Broadmark Realty Capital and Blackstone Mortgage Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Mortgage Trust and Broadmark Realty 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 Broadmark Realty Capital are associated (or correlated) with Blackstone Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Mortgage Trust has no effect on the direction of Broadmark Realty i.e., Broadmark Realty and Blackstone Mortgage go up and down completely randomly.
Pair Corralation between Broadmark Realty and Blackstone Mortgage
Given the investment horizon of 90 days Broadmark Realty Capital is expected to generate 1.36 times more return on investment than Blackstone Mortgage. However, Broadmark Realty is 1.36 times more volatile than Blackstone Mortgage Trust. It trades about 0.1 of its potential returns per unit of risk. Blackstone Mortgage Trust is currently generating about 0.01 per unit of risk. If you would invest 360.00 in Broadmark Realty Capital on August 27, 2024 and sell it today you would earn a total of 122.00 from holding Broadmark Realty Capital or generate 33.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 24.8% |
| Values | Daily Returns |
Broadmark Realty Capital vs. Blackstone Mortgage Trust
Performance |
| Timeline |
| Broadmark Realty Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackstone Mortgage Trust |
Broadmark Realty and Blackstone Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadmark Realty and Blackstone Mortgage
The main advantage of trading using opposite Broadmark Realty and Blackstone Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadmark Realty position performs unexpectedly, Blackstone Mortgage 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 Blackstone Mortgage will offset losses from the drop in Blackstone Mortgage's long position.| Broadmark Realty vs. Two Harbors Investments | Broadmark Realty vs. Ares Commercial Real | Broadmark Realty vs. Apollo Commercial Real | Broadmark Realty vs. Ellington Financial |
| Blackstone Mortgage vs. Starwood Property Trust | Blackstone Mortgage vs. Rithm Capital Corp | Blackstone Mortgage vs. AGNC Investment Corp | Blackstone Mortgage vs. Ares Commercial Real |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |