Correlation Between Blackstone Mortgage and Medical Properties
Can any of the company-specific risk be diversified away by investing in both Blackstone Mortgage and Medical Properties 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 Medical Properties 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 Medical Properties Trust, you can compare the effects of market volatilities on Blackstone Mortgage and Medical Properties 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 Medical Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Mortgage and Medical Properties.
Diversification Opportunities for Blackstone Mortgage and Medical Properties
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackstone and Medical is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Mortgage Trust and Medical Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Properties Trust 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 Medical Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Properties Trust has no effect on the direction of Blackstone Mortgage i.e., Blackstone Mortgage and Medical Properties go up and down completely randomly.
Pair Corralation between Blackstone Mortgage and Medical Properties
Given the investment horizon of 90 days Blackstone Mortgage Trust is expected to under-perform the Medical Properties. But the stock apears to be less risky and, when comparing its historical volatility, Blackstone Mortgage Trust is 2.35 times less risky than Medical Properties. The stock trades about 0.0 of its potential returns per unit of risk. The Medical Properties Trust is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 437.00 in Medical Properties Trust on August 26, 2024 and sell it today you would lose (6.00) from holding Medical Properties Trust or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Mortgage Trust vs. Medical Properties Trust
Performance |
| Timeline |
| Blackstone Mortgage Trust |
| Medical Properties Trust |
Blackstone Mortgage and Medical Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Mortgage and Medical Properties
The main advantage of trading using opposite Blackstone Mortgage and Medical Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Mortgage position performs unexpectedly, Medical Properties 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 Medical Properties will offset losses from the drop in Medical Properties' 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 |
| Medical Properties vs. Sabra Healthcare REIT | Medical Properties vs. LTC Properties | Medical Properties vs. Healthpeak Properties | Medical Properties vs. National Health Investors |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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