Correlation Between Blackstone Mortgage and Apollo Commercial
Can any of the company-specific risk be diversified away by investing in both Blackstone Mortgage and Apollo Commercial 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 Blackstone Mortgage and Apollo Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Mortgage Trust and Apollo Commercial Real, you can compare the effects of market volatilities on Blackstone Mortgage and Apollo Commercial 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 Blackstone Mortgage with a short position of Apollo Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Mortgage and Apollo Commercial.
Diversification Opportunities for Blackstone Mortgage and Apollo Commercial
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Apollo is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Mortgage Trust and Apollo Commercial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Commercial Real and Blackstone Mortgage 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 Blackstone Mortgage Trust are associated (or correlated) with Apollo Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Commercial Real has no effect on the direction of Blackstone Mortgage i.e., Blackstone Mortgage and Apollo Commercial go up and down completely randomly.
Pair Corralation between Blackstone Mortgage and Apollo Commercial
Given the investment horizon of 90 days Blackstone Mortgage Trust is expected to generate 1.2 times more return on investment than Apollo Commercial. However, Blackstone Mortgage is 1.2 times more volatile than Apollo Commercial Real. It trades about 0.08 of its potential returns per unit of risk. Apollo Commercial Real is currently generating about 0.0 per unit of risk. If you would invest 1,619 in Blackstone Mortgage Trust on August 24, 2024 and sell it today you would earn a total of 259.00 from holding Blackstone Mortgage Trust or generate 16.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Mortgage Trust vs. Apollo Commercial Real
Performance |
| Timeline |
| Blackstone Mortgage Trust |
| Apollo Commercial Real |
Blackstone Mortgage and Apollo Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Mortgage and Apollo Commercial
The main advantage of trading using opposite Blackstone Mortgage and Apollo Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Mortgage position performs unexpectedly, Apollo Commercial 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 Apollo Commercial will offset losses from the drop in Apollo Commercial's long position.| Blackstone Mortgage vs. Starwood Property Trust | Blackstone Mortgage vs. Rithm Capital Corp | Blackstone Mortgage vs. AGNC Investment Corp | Blackstone Mortgage vs. Ares Commercial Real |
| Apollo Commercial vs. Lument Finance Trust | Apollo Commercial vs. AG Mortgage Investment | Apollo Commercial vs. Rithm Capital Corp | Apollo Commercial vs. Cherry Hill Mortgage |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |