Correlation Between Bluerock Homes and Sachem Capital
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and Sachem Capital 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 Sachem Capital 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 Sachem Capital Corp, you can compare the effects of market volatilities on Bluerock Homes and Sachem Capital 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 Sachem Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and Sachem Capital.
Diversification Opportunities for Bluerock Homes and Sachem Capital
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluerock and Sachem is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and Sachem Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sachem Capital Corp 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 Sachem Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sachem Capital Corp has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and Sachem Capital go up and down completely randomly.
Pair Corralation between Bluerock Homes and Sachem Capital
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the Sachem Capital. In addition to that, Bluerock Homes is 3.21 times more volatile than Sachem Capital Corp. It trades about -0.2 of its total potential returns per unit of risk. Sachem Capital Corp is currently generating about 0.08 per unit of volatility. If you would invest 2,228 in Sachem Capital Corp on August 28, 2025 and sell it today you would earn a total of 74.00 from holding Sachem Capital Corp or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluerock Homes Trust vs. Sachem Capital Corp
Performance |
| Timeline |
| Bluerock Homes Trust |
| Sachem Capital Corp |
Bluerock Homes and Sachem Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and Sachem Capital
The main advantage of trading using opposite Bluerock Homes and Sachem Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, Sachem Capital 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 Sachem Capital will offset losses from the drop in Sachem Capital's long position.| Bluerock Homes vs. Zillow Group Class | Bluerock Homes vs. Kennedy Wilson Holdings | Bluerock Homes vs. LandBridge Company LLC | Bluerock Homes vs. Zhejiang China Light |
| Sachem Capital vs. Strategic Management and | Sachem Capital vs. North American Construction | Sachem Capital vs. Perfect Medical Health | Sachem Capital vs. Apollo Global Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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