Correlation Between Atai Life and Bluerock Residential

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Can any of the company-specific risk be diversified away by investing in both Atai Life and Bluerock Residential 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 Atai Life and Bluerock Residential into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atai Life Sciences and Bluerock Residential Growth, you can compare the effects of market volatilities on Atai Life and Bluerock Residential 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 Atai Life with a short position of Bluerock Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atai Life and Bluerock Residential.

Diversification Opportunities for Atai Life and Bluerock Residential

-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Atai Life and Bluerock is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Atai Life Sciences and Bluerock Residential Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluerock Residential and Atai Life 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 Atai Life Sciences are associated (or correlated) with Bluerock Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluerock Residential has no effect on the direction of Atai Life i.e., Atai Life and Bluerock Residential go up and down completely randomly.

Pair Corralation between Atai Life and Bluerock Residential

Given the investment horizon of 90 days Atai Life Sciences is expected to under-perform the Bluerock Residential. In addition to that, Atai Life is 12.21 times more volatile than Bluerock Residential Growth. It trades about -0.3 of its total potential returns per unit of risk. Bluerock Residential Growth is currently generating about 0.05 per unit of volatility. If you would invest  2,675  in Bluerock Residential Growth on July 6, 2022 and sell it today you would earn a total of  8.00  from holding Bluerock Residential Growth or generate 0.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Atai Life Sciences  vs.  Bluerock Residential Growth

 Performance (%) 
       Timeline  
Atai Life Sciences 
Atai Life Performance
0 of 100
Over the last 90 days Atai Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Atai Life Price Channel

Bluerock Residential 
Bluerock Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bluerock Residential Growth are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Bluerock Residential is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Bluerock Price Channel

Atai Life and Bluerock Residential Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atai Life and Bluerock Residential

The main advantage of trading using opposite Atai Life and Bluerock Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atai Life position performs unexpectedly, Bluerock Residential 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 Bluerock Residential will offset losses from the drop in Bluerock Residential's long position.
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The idea behind Atai Life Sciences and Bluerock Residential Growth 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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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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