Correlation Between Granite Point and Braemar Hotel
Can any of the company-specific risk be diversified away by investing in both Granite Point and Braemar Hotel 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 Granite Point and Braemar Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite Point Mortgage and Braemar Hotel Resorts, you can compare the effects of market volatilities on Granite Point and Braemar Hotel 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 Granite Point with a short position of Braemar Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Point and Braemar Hotel.
Diversification Opportunities for Granite Point and Braemar Hotel
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Granite and Braemar is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Granite Point Mortgage and Braemar Hotel Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braemar Hotel Resorts and Granite Point 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 Granite Point Mortgage are associated (or correlated) with Braemar Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braemar Hotel Resorts has no effect on the direction of Granite Point i.e., Granite Point and Braemar Hotel go up and down completely randomly.
Pair Corralation between Granite Point and Braemar Hotel
Given the investment horizon of 90 days Granite Point Mortgage is expected to under-perform the Braemar Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Granite Point Mortgage is 1.27 times less risky than Braemar Hotel. The stock trades about -0.11 of its potential returns per unit of risk. The Braemar Hotel Resorts is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 260.00 in Braemar Hotel Resorts on October 7, 2025 and sell it today you would earn a total of 20.00 from holding Braemar Hotel Resorts or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Granite Point Mortgage vs. Braemar Hotel Resorts
Performance |
| Timeline |
| Granite Point Mortgage |
| Braemar Hotel Resorts |
Granite Point and Braemar Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Point and Braemar Hotel
The main advantage of trading using opposite Granite Point and Braemar Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Point position performs unexpectedly, Braemar Hotel 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 Braemar Hotel will offset losses from the drop in Braemar Hotel's long position.| Granite Point vs. Acres Commercial Realty | Granite Point vs. Cherry Hill Mortgage | Granite Point vs. Orion Office Reit | Granite Point vs. Seven Hills Realty |
| Braemar Hotel vs. Franklin Street Properties | Braemar Hotel vs. Seritage Growth Properties | Braemar Hotel vs. Comstock Mining | Braemar Hotel vs. Murano Global Investments |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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