Correlation Between Claros Mortgage and Broadmark Realty
Can any of the company-specific risk be diversified away by investing in both Claros Mortgage and Broadmark Realty 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 Claros Mortgage and Broadmark Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Claros Mortgage Trust and Broadmark Realty Capital, you can compare the effects of market volatilities on Claros Mortgage and Broadmark Realty 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 Claros Mortgage with a short position of Broadmark Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Claros Mortgage and Broadmark Realty.
Diversification Opportunities for Claros Mortgage and Broadmark Realty
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Claros and Broadmark is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Claros Mortgage Trust and Broadmark Realty Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadmark Realty Capital and Claros 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 Claros Mortgage Trust are associated (or correlated) with Broadmark Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadmark Realty Capital has no effect on the direction of Claros Mortgage i.e., Claros Mortgage and Broadmark Realty go up and down completely randomly.
Pair Corralation between Claros Mortgage and Broadmark Realty
If you would invest 634.00 in Claros Mortgage Trust on August 27, 2024 and sell it today you would earn a total of 70.00 from holding Claros Mortgage Trust or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Claros Mortgage Trust vs. Broadmark Realty Capital
Performance |
| Timeline |
| Claros Mortgage Trust |
| Broadmark Realty Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Claros Mortgage and Broadmark Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Claros Mortgage and Broadmark Realty
The main advantage of trading using opposite Claros Mortgage and Broadmark Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Claros Mortgage position performs unexpectedly, Broadmark Realty 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 Broadmark Realty will offset losses from the drop in Broadmark Realty's long position.| Claros Mortgage vs. Ladder Capital Corp | Claros Mortgage vs. Invesco Mortgage Capital | Claros Mortgage vs. AGNC Investment Corp | Claros Mortgage vs. Invesco Mortgage Capital |
| Broadmark Realty vs. Two Harbors Investments | Broadmark Realty vs. Ares Commercial Real | Broadmark Realty vs. Apollo Commercial Real | Broadmark Realty vs. Ellington Financial |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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