Correlation Between Boston Beer and Bluerock Homes
Can any of the company-specific risk be diversified away by investing in both Boston Beer 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 Boston Beer and Bluerock Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Beer and Bluerock Homes Trust, you can compare the effects of market volatilities on Boston Beer 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 Boston Beer with a short position of Bluerock Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and Bluerock Homes.
Diversification Opportunities for Boston Beer and Bluerock Homes
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boston and Bluerock is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Boston Beer 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 Boston Beer 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 Boston Beer 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 Boston Beer i.e., Boston Beer and Bluerock Homes go up and down completely randomly.
Pair Corralation between Boston Beer and Bluerock Homes
Considering the 90-day investment horizon Boston Beer is expected to under-perform the Bluerock Homes. In addition to that, Boston Beer is 1.67 times more volatile than Bluerock Homes Trust. It trades about -0.14 of its total potential returns per unit of risk. Bluerock Homes Trust is currently generating about 0.04 per unit of volatility. If you would invest 1,150 in Bluerock Homes Trust on November 28, 2024 and sell it today you would earn a total of 9.00 from holding Bluerock Homes Trust or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Beer vs. Bluerock Homes Trust
Performance |
| Timeline |
| Boston Beer |
| Bluerock Homes Trust |
Boston Beer and Bluerock Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and Bluerock Homes
The main advantage of trading using opposite Boston Beer and Bluerock Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer 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.| Boston Beer vs. Anheuser Busch Inbev | Boston Beer vs. Molson Coors Beverage | Boston Beer vs. Heineken NV | Boston Beer vs. Ambev SA ADR |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |