Correlation Between Broadmark Realty and Chimera Investment
Can any of the company-specific risk be diversified away by investing in both Broadmark Realty and Chimera Investment 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 Chimera Investment 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 Chimera Investment, you can compare the effects of market volatilities on Broadmark Realty and Chimera Investment 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 Chimera Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadmark Realty and Chimera Investment.
Diversification Opportunities for Broadmark Realty and Chimera Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Broadmark and Chimera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Broadmark Realty Capital and Chimera Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimera Investment 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 Chimera Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimera Investment has no effect on the direction of Broadmark Realty i.e., Broadmark Realty and Chimera Investment go up and down completely randomly.
Pair Corralation between Broadmark Realty and Chimera Investment
If you would invest (100.00) in Broadmark Realty Capital on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Broadmark Realty Capital or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Broadmark Realty Capital vs. Chimera Investment
Performance |
| Timeline |
| Broadmark Realty Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Chimera Investment |
Broadmark Realty and Chimera Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadmark Realty and Chimera Investment
The main advantage of trading using opposite Broadmark Realty and Chimera Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadmark Realty position performs unexpectedly, Chimera Investment 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 Chimera Investment will offset losses from the drop in Chimera Investment'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 |
| Chimera Investment vs. Two Harbors Investments | Chimera Investment vs. MFA Financial | Chimera Investment vs. Invesco Mortgage Capital | Chimera Investment vs. Orchid Island Capital |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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