Correlation Between Brandywine Realty and China Tontine
Can any of the company-specific risk be diversified away by investing in both Brandywine Realty and China Tontine 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 Brandywine Realty and China Tontine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brandywine Realty Trust and China Tontine Wines, you can compare the effects of market volatilities on Brandywine Realty and China Tontine 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 Brandywine Realty with a short position of China Tontine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywine Realty and China Tontine.
Diversification Opportunities for Brandywine Realty and China Tontine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brandywine and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Brandywine Realty Trust and China Tontine Wines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Tontine Wines and Brandywine Realty 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 Brandywine Realty Trust are associated (or correlated) with China Tontine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Tontine Wines has no effect on the direction of Brandywine Realty i.e., Brandywine Realty and China Tontine go up and down completely randomly.
Pair Corralation between Brandywine Realty and China Tontine
Considering the 90-day investment horizon Brandywine Realty is expected to generate 160.1 times less return on investment than China Tontine. But when comparing it to its historical volatility, Brandywine Realty Trust is 35.82 times less risky than China Tontine. It trades about 0.02 of its potential returns per unit of risk. China Tontine Wines is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.20 in China Tontine Wines on August 24, 2024 and sell it today you would earn a total of 6.90 from holding China Tontine Wines or generate 3450.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Brandywine Realty Trust vs. China Tontine Wines
Performance |
| Timeline |
| Brandywine Realty Trust |
| China Tontine Wines |
Brandywine Realty and China Tontine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandywine Realty and China Tontine
The main advantage of trading using opposite Brandywine Realty and China Tontine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywine Realty position performs unexpectedly, China Tontine 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 China Tontine will offset losses from the drop in China Tontine's long position.| Brandywine Realty vs. Douglas Emmett | Brandywine Realty vs. Kilroy Realty Corp | Brandywine Realty vs. Piedmont Office Realty | Brandywine Realty vs. City Office |
| China Tontine vs. Diageo PLC ADR | China Tontine vs. Constellation Brands Class | China Tontine vs. Thai Beverage PCL | China Tontine vs. Morningstar Unconstrained Allocation |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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