Correlation Between Bluerock Residential and BRT Realty
Can any of the company-specific risk be diversified away by investing in both Bluerock Residential and BRT 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 Bluerock Residential and BRT Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluerock Residential Growth and BRT Realty Trust, you can compare the effects of market volatilities on Bluerock Residential and BRT 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 Bluerock Residential with a short position of BRT Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Residential and BRT Realty.
Diversification Opportunities for Bluerock Residential and BRT Realty
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bluerock and BRT is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Residential Growth and BRT Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRT Realty Trust and Bluerock Residential 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 Bluerock Residential Growth are associated (or correlated) with BRT Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRT Realty Trust has no effect on the direction of Bluerock Residential i.e., Bluerock Residential and BRT Realty go up and down completely randomly.
Pair Corralation between Bluerock Residential and BRT Realty
If you would invest 1,586 in BRT Realty Trust on January 25, 2024 and sell it today you would earn a total of 178.00 from holding BRT Realty Trust or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
Bluerock Residential Growth vs. BRT Realty Trust
Performance |
| Timeline |
| Bluerock Residential |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BRT Realty Trust |
Bluerock Residential and BRT Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Residential and BRT Realty
The main advantage of trading using opposite Bluerock Residential and BRT Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Residential position performs unexpectedly, BRT 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 BRT Realty will offset losses from the drop in BRT Realty's long position.| Bluerock Residential vs. NeogamesSA | Bluerock Residential vs. National CineMedia | Bluerock Residential vs. Emerson Radio | Bluerock Residential vs. Avient Corp |
| BRT Realty vs. Nexpoint Residential Trust | BRT Realty vs. Centerspace | BRT Realty vs. Veris Residential | BRT Realty vs. Apartment Income REIT |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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