Correlation Between Brightspire Capital and Outfront Media
Can any of the company-specific risk be diversified away by investing in both Brightspire Capital and Outfront Media 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 Brightspire Capital and Outfront Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brightspire Capital and Outfront Media, you can compare the effects of market volatilities on Brightspire Capital and Outfront Media 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 Brightspire Capital with a short position of Outfront Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brightspire Capital and Outfront Media.
Diversification Opportunities for Brightspire Capital and Outfront Media
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Brightspire and Outfront is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Brightspire Capital and Outfront Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outfront Media and Brightspire Capital 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 Brightspire Capital are associated (or correlated) with Outfront Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outfront Media has no effect on the direction of Brightspire Capital i.e., Brightspire Capital and Outfront Media go up and down completely randomly.
Pair Corralation between Brightspire Capital and Outfront Media
Given the investment horizon of 90 days Brightspire Capital is expected to generate 3.11 times more return on investment than Outfront Media. However, Brightspire Capital is 3.11 times more volatile than Outfront Media. It trades about 0.22 of its potential returns per unit of risk. Outfront Media is currently generating about 0.23 per unit of risk. If you would invest 525.00 in Brightspire Capital on August 30, 2024 and sell it today you would earn a total of 111.00 from holding Brightspire Capital or generate 21.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brightspire Capital vs. Outfront Media
Performance |
| Timeline |
| Brightspire Capital |
| Outfront Media |
Brightspire Capital and Outfront Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brightspire Capital and Outfront Media
The main advantage of trading using opposite Brightspire Capital and Outfront Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brightspire Capital position performs unexpectedly, Outfront Media 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 Outfront Media will offset losses from the drop in Outfront Media's long position.| Brightspire Capital vs. Essential Properties Realty | Brightspire Capital vs. Armada Hflr Pr | Brightspire Capital vs. CTO Realty Growth | Brightspire Capital vs. Modiv Inc |
| Outfront Media vs. PotlatchDeltic Corp | Outfront Media vs. Gaming Leisure Properties | Outfront Media vs. Rayonier | Outfront Media vs. Weyerhaeuser |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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