Correlation Between Brixmor Property and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Kimco 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 Kimco 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 Kimco Realty, you can compare the effects of market volatilities on Brixmor Property and Kimco 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 Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Kimco Realty.
Diversification Opportunities for Brixmor Property and Kimco Realty
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Brixmor and Kimco is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty 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 Kimco Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimco Realty has no effect on the direction of Brixmor Property i.e., Brixmor Property and Kimco Realty go up and down completely randomly.
Pair Corralation between Brixmor Property and Kimco Realty
Considering the 90-day investment horizon Brixmor Property is expected to generate 1.13 times more return on investment than Kimco Realty. However, Brixmor Property is 1.13 times more volatile than Kimco Realty. It trades about 0.35 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.33 per unit of risk. If you would invest 2,773 in Brixmor Property on August 28, 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 Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brixmor Property vs. Kimco Realty
Performance |
| Timeline |
| Brixmor Property |
| Kimco Realty |
Brixmor Property and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Kimco Realty
The main advantage of trading using opposite Brixmor Property and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Kimco 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 Kimco Realty will offset losses from the drop in Kimco 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 |
| Kimco Realty vs. Saul Centers | Kimco Realty vs. Brixmor Property | Kimco Realty vs. Four Corners Property | Kimco Realty vs. Netstreit Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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