Correlation Between DATANG INTL and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both DATANG INTL and Brixmor Property 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 DATANG INTL and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATANG INTL POW and Brixmor Property Group, you can compare the effects of market volatilities on DATANG INTL and Brixmor Property 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 DATANG INTL with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATANG INTL and Brixmor Property.
Diversification Opportunities for DATANG INTL and Brixmor Property
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between DATANG and Brixmor is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding DATANG INTL POW and Brixmor Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and DATANG INTL 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 DATANG INTL POW are associated (or correlated) with Brixmor Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brixmor Property has no effect on the direction of DATANG INTL i.e., DATANG INTL and Brixmor Property go up and down completely randomly.
Pair Corralation between DATANG INTL and Brixmor Property
Assuming the 90 days trading horizon DATANG INTL POW is expected to under-perform the Brixmor Property. In addition to that, DATANG INTL is 1.78 times more volatile than Brixmor Property Group. It trades about -0.2 of its total potential returns per unit of risk. Brixmor Property Group is currently generating about 0.32 per unit of volatility. If you would invest 2,600 in Brixmor Property Group on August 29, 2024 and sell it today you would earn a total of 260.00 from holding Brixmor Property Group or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DATANG INTL POW vs. Brixmor Property Group
Performance |
| Timeline |
| DATANG INTL POW |
| Brixmor Property |
DATANG INTL and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATANG INTL and Brixmor Property
The main advantage of trading using opposite DATANG INTL and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATANG INTL position performs unexpectedly, Brixmor Property 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 Brixmor Property will offset losses from the drop in Brixmor Property's long position.| DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Superior Plus Corp | DATANG INTL vs. SIVERS SEMICONDUCTORS AB |
| Brixmor Property vs. DAIRY FARM INTL | Brixmor Property vs. Pure Storage | Brixmor Property vs. DATANG INTL POW | Brixmor Property vs. National Storage Affiliates |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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