Correlation Between Bluerock Residential and Camden Property
Can any of the company-specific risk be diversified away by investing in both Bluerock Residential and Camden Property 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 Camden Property 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 Camden Property Trust, you can compare the effects of market volatilities on Bluerock Residential and Camden Property 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 Camden Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Residential and Camden Property.
Diversification Opportunities for Bluerock Residential and Camden Property
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bluerock and Camden is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Residential Growth and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property 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 Camden Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of Bluerock Residential i.e., Bluerock Residential and Camden Property go up and down completely randomly.
Pair Corralation between Bluerock Residential and Camden Property
Considering the 90-day investment horizon Bluerock Residential Growth is expected to generate 0.51 times more return on investment than Camden Property. However, Bluerock Residential Growth is 1.95 times less risky than Camden Property. It trades about 0.01 of its potential returns per unit of risk. Camden Property Trust is currently generating about -0.05 per unit of risk. If you would invest 2,654 in Bluerock Residential Growth on January 18, 2024 and sell it today you would earn a total of 6.00 from holding Bluerock Residential Growth or generate 0.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 22.63% |
Values | Daily Returns |
Bluerock Residential Growth vs. Camden Property Trust
Performance |
Timeline |
Bluerock Residential |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Camden Property Trust |
Bluerock Residential and Camden Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bluerock Residential and Camden Property
The main advantage of trading using opposite Bluerock Residential and Camden Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Residential position performs unexpectedly, Camden Property 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 Camden Property will offset losses from the drop in Camden Property's long position.Bluerock Residential vs. Kaltura | Bluerock Residential vs. ZhongAn Online P | Bluerock Residential vs. Arrow Electronics | Bluerock Residential vs. Boston Omaha Corp |
Camden Property vs. AvalonBay Communities | Camden Property vs. Essex Property Trust | Camden Property vs. Equity Residential | Camden Property vs. UDR Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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