Correlation Between Brandywine Realty and Lees Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Brandywine Realty and Lees Pharmaceutical 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 Lees Pharmaceutical 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 Lees Pharmaceutical Holdings, you can compare the effects of market volatilities on Brandywine Realty and Lees Pharmaceutical 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 Lees Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywine Realty and Lees Pharmaceutical.
Diversification Opportunities for Brandywine Realty and Lees Pharmaceutical
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brandywine and Lees is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Brandywine Realty Trust and Lees Pharmaceutical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lees Pharmaceutical 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 Lees Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lees Pharmaceutical has no effect on the direction of Brandywine Realty i.e., Brandywine Realty and Lees Pharmaceutical go up and down completely randomly.
Pair Corralation between Brandywine Realty and Lees Pharmaceutical
If you would invest 532.00 in Brandywine Realty Trust on August 27, 2024 and sell it today you would earn a total of 23.00 from holding Brandywine Realty Trust or generate 4.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Brandywine Realty Trust vs. Lees Pharmaceutical Holdings
Performance |
| Timeline |
| Brandywine Realty Trust |
| Lees Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brandywine Realty and Lees Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandywine Realty and Lees Pharmaceutical
The main advantage of trading using opposite Brandywine Realty and Lees Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywine Realty position performs unexpectedly, Lees Pharmaceutical 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 Lees Pharmaceutical will offset losses from the drop in Lees Pharmaceutical'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 |
| Lees Pharmaceutical vs. SNDL Inc | Lees Pharmaceutical vs. Diamond Estates Wines | Lees Pharmaceutical vs. Compania Cervecerias Unidas | Lees Pharmaceutical vs. Brandywine Realty Trust |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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