Correlation Between Grocery Outlet and Bluerock Homes
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Bluerock Homes 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 Grocery Outlet and Bluerock Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grocery Outlet Holding and Bluerock Homes Trust, you can compare the effects of market volatilities on Grocery Outlet and Bluerock Homes 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 Grocery Outlet with a short position of Bluerock Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Bluerock Homes.
Diversification Opportunities for Grocery Outlet and Bluerock Homes
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grocery and Bluerock is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Bluerock Homes Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluerock Homes Trust and Grocery Outlet 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 Grocery Outlet Holding are associated (or correlated) with Bluerock Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluerock Homes Trust has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Bluerock Homes go up and down completely randomly.
Pair Corralation between Grocery Outlet and Bluerock Homes
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to generate 1.5 times more return on investment than Bluerock Homes. However, Grocery Outlet is 1.5 times more volatile than Bluerock Homes Trust. It trades about 0.0 of its potential returns per unit of risk. Bluerock Homes Trust is currently generating about -0.06 per unit of risk. If you would invest 2,091 in Grocery Outlet Holding on September 5, 2024 and sell it today you would lose (111.00) from holding Grocery Outlet Holding or give up 5.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grocery Outlet Holding vs. Bluerock Homes Trust
Performance |
| Timeline |
| Grocery Outlet Holding |
| Bluerock Homes Trust |
Grocery Outlet and Bluerock Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and Bluerock Homes
The main advantage of trading using opposite Grocery Outlet and Bluerock Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, Bluerock Homes 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 Bluerock Homes will offset losses from the drop in Bluerock Homes' long position.| Grocery Outlet vs. Natural Grocers by | Grocery Outlet vs. Village Super Market | Grocery Outlet vs. Ingles Markets Incorporated | Grocery Outlet vs. Ocado Group plc |
| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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