Correlation Between Brixmor Property and CBL Associates
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and CBL Associates 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 Brixmor Property and CBL Associates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and CBL Associates Properties, you can compare the effects of market volatilities on Brixmor Property and CBL Associates 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 Brixmor Property with a short position of CBL Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and CBL Associates.
Diversification Opportunities for Brixmor Property and CBL Associates
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brixmor and CBL is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and CBL Associates Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBL Associates Properties and Brixmor Property 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 Brixmor Property are associated (or correlated) with CBL Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBL Associates Properties has no effect on the direction of Brixmor Property i.e., Brixmor Property and CBL Associates go up and down completely randomly.
Pair Corralation between Brixmor Property and CBL Associates
Considering the 90-day investment horizon Brixmor Property is expected to generate 1.55 times less return on investment than CBL Associates. But when comparing it to its historical volatility, Brixmor Property is 1.52 times less risky than CBL Associates. It trades about 0.58 of its potential returns per unit of risk. CBL Associates Properties is currently generating about 0.6 of returns per unit of risk over similar time horizon. If you would invest 2,609 in CBL Associates Properties on September 1, 2024 and sell it today you would earn a total of 481.00 from holding CBL Associates Properties or generate 18.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brixmor Property vs. CBL Associates Properties
Performance |
| Timeline |
| Brixmor Property |
| CBL Associates Properties |
Brixmor Property and CBL Associates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and CBL Associates
The main advantage of trading using opposite Brixmor Property and CBL Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, CBL Associates 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 CBL Associates will offset losses from the drop in CBL Associates' long position.| Brixmor Property vs. Site Centers Corp | Brixmor Property vs. Acadia Realty Trust | Brixmor Property vs. Netstreit Corp | Brixmor Property vs. Urban Edge Properties |
| CBL Associates vs. Kite Realty Group | CBL Associates vs. Site Centers Corp | CBL Associates vs. Urban Edge Properties | CBL Associates vs. Acadia 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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