Correlation Between Blackstone Mortgage and ELLINGTON RESIDMTG

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

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

Diversification Opportunities for Blackstone Mortgage and ELLINGTON RESIDMTG

0.0

Correlation Coefficient

Blackstone Mortgage  ELLINGTON RESIDMTG

Pay attention - limited upside

The 3 months correlation between Blackstone and ELLINGTON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Mortgage Trust and ELLINGTON RESIDMTG SBI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELLINGTON RESIDMTG SBI and Blackstone 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 Blackstone Mortgage Trust are associated (or correlated) with ELLINGTON RESIDMTG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELLINGTON RESIDMTG SBI has no effect on the direction of Blackstone Mortgage i.e., Blackstone Mortgage and ELLINGTON RESIDMTG go up and down completely randomly.

Pair Corralation between Blackstone Mortgage and ELLINGTON RESIDMTG

If you would invest (100.00) in ELLINGTON RESIDMTG SBI on October 24, 2024 and sell it today you would earn a total of  100.00  from holding ELLINGTON RESIDMTG SBI or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Blackstone Mortgage Trust  vs.  ELLINGTON RESIDMTG SBI

Blackstone Mortgage Trust

Risk-Adjusted Performance

0 of 100

Weak

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

ELLINGTON RESIDMTG SBI

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ELLINGTON RESIDMTG SBI are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, ELLINGTON RESIDMTG may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Blackstone Mortgage and ELLINGTON RESIDMTG

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

The idea behind Blackstone Mortgage Trust and ELLINGTON RESIDMTG SBI 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.