Correlation Between Starwood Property and Broadmark Realty
Can any of the company-specific risk be diversified away by investing in both Starwood Property 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 Starwood Property and Broadmark Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Starwood Property Trust and Broadmark Realty Capital, you can compare the effects of market volatilities on Starwood Property 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 Starwood Property with a short position of Broadmark Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starwood Property and Broadmark Realty.
Diversification Opportunities for Starwood Property and Broadmark Realty
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Starwood and Broadmark is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Starwood Property 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 Starwood Property 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 Starwood Property 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 Starwood Property i.e., Starwood Property and Broadmark Realty go up and down completely randomly.
Pair Corralation between Starwood Property and Broadmark Realty
If you would invest 1,794 in Starwood Property Trust on August 24, 2024 and sell it today you would earn a total of 197.00 from holding Starwood Property Trust or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Starwood Property Trust vs. Broadmark Realty Capital
Performance |
| Timeline |
| Starwood Property Trust |
| Broadmark Realty Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Starwood Property and Broadmark Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Starwood Property and Broadmark Realty
The main advantage of trading using opposite Starwood Property and Broadmark Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starwood Property 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.| Starwood Property vs. Blackstone Mortgage Trust | Starwood Property vs. Arbor Realty Trust | Starwood Property vs. Apollo Commercial Real | Starwood Property vs. Omega Healthcare Investors |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |