Correlation Between Brandywine Realty and Lakeland Industries
Can any of the company-specific risk be diversified away by investing in both Brandywine Realty and Lakeland Industries 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 Lakeland Industries 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 Lakeland Industries, you can compare the effects of market volatilities on Brandywine Realty and Lakeland Industries 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 Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywine Realty and Lakeland Industries.
Diversification Opportunities for Brandywine Realty and Lakeland Industries
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brandywine and Lakeland is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Brandywine Realty Trust and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries 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 Lakeland Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of Brandywine Realty i.e., Brandywine Realty and Lakeland Industries go up and down completely randomly.
Pair Corralation between Brandywine Realty and Lakeland Industries
Considering the 90-day investment horizon Brandywine Realty is expected to generate 2.07 times less return on investment than Lakeland Industries. In addition to that, Brandywine Realty is 1.08 times more volatile than Lakeland Industries. It trades about 0.02 of its total potential returns per unit of risk. Lakeland Industries is currently generating about 0.05 per unit of volatility. If you would invest 1,341 in Lakeland Industries on August 24, 2024 and sell it today you would earn a total of 820.00 from holding Lakeland Industries or generate 61.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brandywine Realty Trust vs. Lakeland Industries
Performance |
| Timeline |
| Brandywine Realty Trust |
| Lakeland Industries |
Brandywine Realty and Lakeland Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandywine Realty and Lakeland Industries
The main advantage of trading using opposite Brandywine Realty and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywine Realty position performs unexpectedly, Lakeland Industries 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 Lakeland Industries will offset losses from the drop in Lakeland Industries' long position.| Brandywine Realty vs. Douglas Emmett | Brandywine Realty vs. Kilroy Realty Corp | Brandywine Realty vs. Piedmont Office Realty | Brandywine Realty vs. City Office |
| Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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