Correlation Between Brixmor Property and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Cresud SACIF 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 Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and Cresud SACIF y, you can compare the effects of market volatilities on Brixmor Property and Cresud SACIF 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 Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Cresud SACIF.
Diversification Opportunities for Brixmor Property and Cresud SACIF
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Brixmor and Cresud is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y 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 Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Brixmor Property i.e., Brixmor Property and Cresud SACIF go up and down completely randomly.
Pair Corralation between Brixmor Property and Cresud SACIF
Considering the 90-day investment horizon Brixmor Property is expected to generate 2.12 times less return on investment than Cresud SACIF. But when comparing it to its historical volatility, Brixmor Property is 3.27 times less risky than Cresud SACIF. It trades about 0.58 of its potential returns per unit of risk. Cresud SACIF y is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 949.00 in Cresud SACIF y on September 1, 2024 and sell it today you would earn a total of 239.00 from holding Cresud SACIF y or generate 25.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brixmor Property vs. Cresud SACIF y
Performance |
| Timeline |
| Brixmor Property |
| Cresud SACIF y |
Brixmor Property and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Cresud SACIF
The main advantage of trading using opposite Brixmor Property and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF'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 |
| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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