Correlation Between Bluerock Homes and LogProstyle

Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and LogProstyle 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 Homes and LogProstyle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bluerock Homes Trust and LogProstyle, you can compare the effects of market volatilities on Bluerock Homes and LogProstyle 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 Homes with a short position of LogProstyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and LogProstyle.

Diversification Opportunities for Bluerock Homes and LogProstyle

-0.43

Correlation Coefficient

Bluerock Homes  LogProstyle

Very good diversification

The 3 months correlation between Bluerock and LogProstyle is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and LogProstyle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LogProstyle and Bluerock Homes 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 Homes Trust are associated (or correlated) with LogProstyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LogProstyle has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and LogProstyle go up and down completely randomly.

Pair Corralation between Bluerock Homes and LogProstyle

Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the LogProstyle. But the stock apears to be less risky and, when comparing its historical volatility, Bluerock Homes Trust is 2.31 times less risky than LogProstyle. The stock trades about -0.23 of its potential returns per unit of risk. The LogProstyle is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  99.00  in LogProstyle on July 30, 2025 and sell it today you would earn a total of  4.00  from holding LogProstyle or generate 4.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bluerock Homes Trust  vs.  LogProstyle

Bluerock Homes Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Bluerock Homes Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

LogProstyle

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LogProstyle are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, LogProstyle may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Bluerock Homes and LogProstyle

The main advantage of trading using opposite Bluerock Homes and LogProstyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, LogProstyle 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 LogProstyle will offset losses from the drop in LogProstyle's long position.

The idea behind Bluerock Homes Trust and LogProstyle pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.