Correlation Between Ambase Corp and Bridgemarq Real
Can any of the company-specific risk be diversified away by investing in both Ambase Corp and Bridgemarq Real 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 Ambase Corp and Bridgemarq Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambase Corp and Bridgemarq Real Estate, you can compare the effects of market volatilities on Ambase Corp and Bridgemarq Real 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 Ambase Corp with a short position of Bridgemarq Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambase Corp and Bridgemarq Real.
Diversification Opportunities for Ambase Corp and Bridgemarq Real
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ambase and Bridgemarq is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ambase Corp and Bridgemarq Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgemarq Real Estate and Ambase Corp 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 Ambase Corp are associated (or correlated) with Bridgemarq Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgemarq Real Estate has no effect on the direction of Ambase Corp i.e., Ambase Corp and Bridgemarq Real go up and down completely randomly.
Pair Corralation between Ambase Corp and Bridgemarq Real
Given the investment horizon of 90 days Ambase Corp is expected to generate 2.17 times more return on investment than Bridgemarq Real. However, Ambase Corp is 2.17 times more volatile than Bridgemarq Real Estate. It trades about 0.11 of its potential returns per unit of risk. Bridgemarq Real Estate is currently generating about 0.06 per unit of risk. If you would invest 21.00 in Ambase Corp on August 2, 2024 and sell it today you would earn a total of 14.00 from holding Ambase Corp or generate 66.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 89.52% |
Values | Daily Returns |
Ambase Corp vs. Bridgemarq Real Estate
Performance |
Timeline |
Ambase Corp |
Bridgemarq Real Estate |
Ambase Corp and Bridgemarq Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ambase Corp and Bridgemarq Real
The main advantage of trading using opposite Ambase Corp and Bridgemarq Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambase Corp position performs unexpectedly, Bridgemarq Real 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 Bridgemarq Real will offset losses from the drop in Bridgemarq Real's long position.Ambase Corp vs. Adler Group SA | Ambase Corp vs. Aztec Land Comb | Ambase Corp vs. Bridgemarq Real Estate | Ambase Corp vs. Agritek Holdings |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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