Correlation Between Brandywine Realty and Weyco
Can any of the company-specific risk be diversified away by investing in both Brandywine Realty and Weyco 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 Weyco 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 Weyco Group, you can compare the effects of market volatilities on Brandywine Realty and Weyco 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 Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywine Realty and Weyco.
Diversification Opportunities for Brandywine Realty and Weyco
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Brandywine and Weyco is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Brandywine Realty Trust and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group 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 Weyco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyco Group has no effect on the direction of Brandywine Realty i.e., Brandywine Realty and Weyco go up and down completely randomly.
Pair Corralation between Brandywine Realty and Weyco
Considering the 90-day investment horizon Brandywine Realty Trust is expected to generate 0.86 times more return on investment than Weyco. However, Brandywine Realty Trust is 1.16 times less risky than Weyco. It trades about 0.1 of its potential returns per unit of risk. Weyco Group is currently generating about 0.07 per unit of risk. If you would invest 435.00 in Brandywine Realty Trust on September 3, 2024 and sell it today you would earn a total of 129.00 from holding Brandywine Realty Trust or generate 29.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brandywine Realty Trust vs. Weyco Group
Performance |
| Timeline |
| Brandywine Realty Trust |
| Weyco Group |
Brandywine Realty and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandywine Realty and Weyco
The main advantage of trading using opposite Brandywine Realty and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywine Realty position performs unexpectedly, Weyco 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 Weyco will offset losses from the drop in Weyco'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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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