Correlation Between Claros Mortgage and RMR

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

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

Diversification Opportunities for Claros Mortgage and RMR

-0.01

Correlation Coefficient

Claros Mortgage  RMR

Good diversification

The 3 months correlation between Claros and RMR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Claros Mortgage Trust and RMR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RMR Group and Claros Mortgage 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 Claros Mortgage Trust are associated (or correlated) with RMR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RMR Group has no effect on the direction of Claros Mortgage i.e., Claros Mortgage and RMR go up and down completely randomly.

Pair Corralation between Claros Mortgage and RMR

Given the investment horizon of 90 days Claros Mortgage Trust is expected to under-perform the RMR. In addition to that, Claros Mortgage is 2.29 times more volatile than RMR Group. It trades about 0.0 of its total potential returns per unit of risk. RMR Group is currently generating about 0.03 per unit of volatility. If you would invest  1,479  in RMR Group on October 6, 2025 and sell it today you would earn a total of  34.00  from holding RMR Group or generate 2.3% return on investment over 90 days.

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

Claros Mortgage Trust  vs.  RMR Group

Claros Mortgage Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Claros Mortgage Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Claros Mortgage is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

RMR Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in RMR Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable primary indicators, RMR is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Claros Mortgage and RMR

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

The idea behind Claros Mortgage Trust and RMR Group 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.