Correlation Between Brixmor Property and EPR Properties
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and EPR Properties 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 EPR Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and EPR Properties, you can compare the effects of market volatilities on Brixmor Property and EPR Properties 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 EPR Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and EPR Properties.
Diversification Opportunities for Brixmor Property and EPR Properties
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brixmor and EPR is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and EPR Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR 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 EPR Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR Properties has no effect on the direction of Brixmor Property i.e., Brixmor Property and EPR Properties go up and down completely randomly.
Pair Corralation between Brixmor Property and EPR Properties
Considering the 90-day investment horizon Brixmor Property is expected to generate 0.83 times more return on investment than EPR Properties. However, Brixmor Property is 1.21 times less risky than EPR Properties. It trades about 0.35 of its potential returns per unit of risk. EPR Properties is currently generating about -0.08 per unit of risk. If you would invest 2,773 in Brixmor Property on August 27, 2024 and sell it today you would earn a total of 229.00 from holding Brixmor Property or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brixmor Property vs. EPR Properties
Performance |
| Timeline |
| Brixmor Property |
| EPR Properties |
Brixmor Property and EPR Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and EPR Properties
The main advantage of trading using opposite Brixmor Property and EPR Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, EPR Properties 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 EPR Properties will offset losses from the drop in EPR Properties' 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 |
| EPR Properties vs. Broadstone Net Lease | EPR Properties vs. Armada Hflr Pr | EPR Properties vs. Brightspire Capital | EPR Properties vs. Safehold |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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