Correlation Between BRT Realty and Site Centers
Can any of the company-specific risk be diversified away by investing in both BRT Realty and Site Centers 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 Site Centers 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 Site Centers Corp, you can compare the effects of market volatilities on BRT Realty and Site Centers 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 Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRT Realty and Site Centers.
Diversification Opportunities for BRT Realty and Site Centers
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BRT and Site is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BRT Realty Trust and Site Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Site Centers Corp 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 Site Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Site Centers Corp has no effect on the direction of BRT Realty i.e., BRT Realty and Site Centers go up and down completely randomly.
Pair Corralation between BRT Realty and Site Centers
Considering the 90-day investment horizon BRT Realty Trust is expected to generate 1.53 times more return on investment than Site Centers. However, BRT Realty is 1.53 times more volatile than Site Centers Corp. It trades about 0.36 of its potential returns per unit of risk. Site Centers Corp is currently generating about -0.27 per unit of risk. If you would invest 1,659 in BRT Realty Trust on August 30, 2024 and sell it today you would earn a total of 321.00 from holding BRT Realty Trust or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRT Realty Trust vs. Site Centers Corp
Performance |
| Timeline |
| BRT Realty Trust |
| Site Centers Corp |
BRT Realty and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRT Realty and Site Centers
The main advantage of trading using opposite BRT Realty and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRT Realty position performs unexpectedly, Site Centers 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 Site Centers will offset losses from the drop in Site Centers' long position.| BRT Realty vs. Veris Residential | BRT Realty vs. Clipper Realty | BRT Realty vs. UDR Inc | BRT Realty vs. Equity Lifestyle Properties |
| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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