Correlation Between Brightspire Capital and Granite Real
Can any of the company-specific risk be diversified away by investing in both Brightspire Capital and Granite Real 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 Brightspire Capital and Granite Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brightspire Capital and Granite Real Estate, you can compare the effects of market volatilities on Brightspire Capital and Granite Real 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 Brightspire Capital with a short position of Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brightspire Capital and Granite Real.
Diversification Opportunities for Brightspire Capital and Granite Real
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brightspire and Granite is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Brightspire Capital and Granite Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Real Estate and Brightspire Capital 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 Brightspire Capital are associated (or correlated) with Granite Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Real Estate has no effect on the direction of Brightspire Capital i.e., Brightspire Capital and Granite Real go up and down completely randomly.
Pair Corralation between Brightspire Capital and Granite Real
Given the investment horizon of 90 days Brightspire Capital is expected to generate 1.05 times more return on investment than Granite Real. However, Brightspire Capital is 1.05 times more volatile than Granite Real Estate. It trades about 0.05 of its potential returns per unit of risk. Granite Real Estate is currently generating about 0.01 per unit of risk. If you would invest 443.00 in Brightspire Capital on August 31, 2024 and sell it today you would earn a total of 193.00 from holding Brightspire Capital or generate 43.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brightspire Capital vs. Granite Real Estate
Performance |
| Timeline |
| Brightspire Capital |
| Granite Real Estate |
Brightspire Capital and Granite Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brightspire Capital and Granite Real
The main advantage of trading using opposite Brightspire Capital and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brightspire Capital position performs unexpectedly, Granite Real 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 Granite Real will offset losses from the drop in Granite Real's long position.| Brightspire Capital vs. Essential Properties Realty | Brightspire Capital vs. Armada Hflr Pr | Brightspire Capital vs. CTO Realty Growth | Brightspire Capital vs. Modiv Inc |
| Granite Real vs. Public Storage | Granite Real vs. Public Storage | Granite Real vs. Public Storage | Granite Real vs. Public Storage |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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