Correlation Between Hurco Companies and Bluerock Homes
Can any of the company-specific risk be diversified away by investing in both Hurco Companies 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 Hurco Companies and Bluerock Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Bluerock Homes Trust, you can compare the effects of market volatilities on Hurco Companies 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 Hurco Companies with a short position of Bluerock Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Bluerock Homes.
Diversification Opportunities for Hurco Companies and Bluerock Homes
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hurco and Bluerock is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies 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 Hurco Companies 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 Hurco Companies 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 Hurco Companies i.e., Hurco Companies and Bluerock Homes go up and down completely randomly.
Pair Corralation between Hurco Companies and Bluerock Homes
Given the investment horizon of 90 days Hurco Companies is expected to generate 1.48 times more return on investment than Bluerock Homes. However, Hurco Companies is 1.48 times more volatile than Bluerock Homes Trust. It trades about 0.17 of its potential returns per unit of risk. Bluerock Homes Trust is currently generating about -0.17 per unit of risk. If you would invest 2,144 in Hurco Companies on August 28, 2024 and sell it today you would earn a total of 175.00 from holding Hurco Companies or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurco Companies vs. Bluerock Homes Trust
Performance |
| Timeline |
| Hurco Companies |
| Bluerock Homes Trust |
Hurco Companies and Bluerock Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Bluerock Homes
The main advantage of trading using opposite Hurco Companies and Bluerock Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies 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.| Hurco Companies vs. Aquagold International | Hurco Companies vs. Morningstar Unconstrained Allocation | Hurco Companies vs. High Yield Municipal Fund | Hurco Companies vs. Thrivent High Yield |
| 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..
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world |