Correlation Between BRT Realty and Apartment Income
Can any of the company-specific risk be diversified away by investing in both BRT Realty and Apartment Income 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 BRT Realty and Apartment Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRT Realty Trust and Apartment Income REIT, you can compare the effects of market volatilities on BRT Realty and Apartment Income 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 BRT Realty with a short position of Apartment Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRT Realty and Apartment Income.
Diversification Opportunities for BRT Realty and Apartment Income
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between BRT and Apartment is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding BRT Realty Trust and Apartment Income REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apartment Income REIT and BRT 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 BRT Realty Trust are associated (or correlated) with Apartment Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apartment Income REIT has no effect on the direction of BRT Realty i.e., BRT Realty and Apartment Income go up and down completely randomly.
Pair Corralation between BRT Realty and Apartment Income
If you would invest 1,668 in BRT Realty Trust on August 29, 2024 and sell it today you would earn a total of 314.00 from holding BRT Realty Trust or generate 18.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
BRT Realty Trust vs. Apartment Income REIT
Performance |
| Timeline |
| BRT Realty Trust |
| Apartment Income REIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BRT Realty and Apartment Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRT Realty and Apartment Income
The main advantage of trading using opposite BRT Realty and Apartment Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRT Realty position performs unexpectedly, Apartment Income 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 Apartment Income will offset losses from the drop in Apartment Income's long position.| BRT Realty vs. Nexpoint Residential Trust | BRT Realty vs. Centerspace | BRT Realty vs. Veris Residential | BRT Realty vs. Apartment Investment and |
| Apartment Income vs. Clipper Realty | Apartment Income vs. UDR Inc | Apartment Income vs. Nexpoint Residential Trust | Apartment Income vs. BRT Realty Trust |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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