Correlation Between Brandywine Realty and Site Centers
Can any of the company-specific risk be diversified away by investing in both Brandywine Realty and Site Centers 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 Site Centers 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 Site Centers Corp, you can compare the effects of market volatilities on Brandywine Realty and Site Centers 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 Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywine Realty and Site Centers.
Diversification Opportunities for Brandywine Realty and Site Centers
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brandywine and Site is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Brandywine Realty Trust and Site Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Site Centers Corp 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 Site Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Site Centers Corp has no effect on the direction of Brandywine Realty i.e., Brandywine Realty and Site Centers go up and down completely randomly.
Pair Corralation between Brandywine Realty and Site Centers
Considering the 90-day investment horizon Brandywine Realty Trust is expected to generate 1.24 times more return on investment than Site Centers. However, Brandywine Realty is 1.24 times more volatile than Site Centers Corp. It trades about 0.24 of its potential returns per unit of risk. Site Centers Corp is currently generating about -0.27 per unit of risk. If you would invest 524.00 in Brandywine Realty Trust on August 30, 2024 and sell it today you would earn a total of 53.00 from holding Brandywine Realty Trust or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brandywine Realty Trust vs. Site Centers Corp
Performance |
| Timeline |
| Brandywine Realty Trust |
| Site Centers Corp |
Brandywine Realty and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandywine Realty and Site Centers
The main advantage of trading using opposite Brandywine Realty and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywine Realty position performs unexpectedly, Site Centers 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 Site Centers will offset losses from the drop in Site Centers' long position.| Brandywine Realty vs. Douglas Emmett | Brandywine Realty vs. Kilroy Realty Corp | Brandywine Realty vs. Piedmont Office Realty | Brandywine Realty vs. City Office |
| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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