Correlation Between Brandywine Realty and SNDL
Can any of the company-specific risk be diversified away by investing in both Brandywine Realty and SNDL 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 SNDL 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 SNDL Inc, you can compare the effects of market volatilities on Brandywine Realty and SNDL 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 SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywine Realty and SNDL.
Diversification Opportunities for Brandywine Realty and SNDL
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brandywine and SNDL is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Brandywine Realty Trust and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc 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 SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of Brandywine Realty i.e., Brandywine Realty and SNDL go up and down completely randomly.
Pair Corralation between Brandywine Realty and SNDL
Considering the 90-day investment horizon Brandywine Realty Trust is expected to generate 0.68 times more return on investment than SNDL. However, Brandywine Realty Trust is 1.47 times less risky than SNDL. It trades about 0.02 of its potential returns per unit of risk. SNDL Inc is currently generating about 0.01 per unit of risk. If you would invest 486.00 in Brandywine Realty Trust on October 21, 2024 and sell it today you would earn a total of 49.00 from holding Brandywine Realty Trust or generate 10.08% 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. SNDL Inc
Performance |
| Timeline |
| Brandywine Realty Trust |
| SNDL Inc |
Brandywine Realty and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandywine Realty and SNDL
The main advantage of trading using opposite Brandywine Realty and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywine Realty position performs unexpectedly, SNDL 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 SNDL will offset losses from the drop in SNDL'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 |
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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