Correlation Between Brixmor Property and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Cedar Realty 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 Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and Cedar Realty Trust, you can compare the effects of market volatilities on Brixmor Property and Cedar Realty 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Cedar Realty.
Diversification Opportunities for Brixmor Property and Cedar Realty
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brixmor and Cedar is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Brixmor Property i.e., Brixmor Property and Cedar Realty go up and down completely randomly.
Pair Corralation between Brixmor Property and Cedar Realty
Considering the 90-day investment horizon Brixmor Property is expected to generate 0.48 times more return on investment than Cedar Realty. However, Brixmor Property is 2.08 times less risky than Cedar Realty. It trades about 0.58 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.18 per unit of risk. If you would invest 2,695 in Brixmor Property on September 1, 2024 and sell it today you would earn a total of 312.00 from holding Brixmor Property or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brixmor Property vs. Cedar Realty Trust
Performance |
| Timeline |
| Brixmor Property |
| Cedar Realty Trust |
Brixmor Property and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Cedar Realty
The main advantage of trading using opposite Brixmor Property and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty's 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 |
| Cedar Realty vs. Site Centers Corp | Cedar Realty vs. Urban Edge Properties | Cedar Realty vs. Retail Opportunity Investments | Cedar Realty vs. Brixmor Property |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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