Correlation Between Brixmor Property and Plaza Retail
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Plaza Retail 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 Plaza Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and Plaza Retail REIT, you can compare the effects of market volatilities on Brixmor Property and Plaza Retail 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 Plaza Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Plaza Retail.
Diversification Opportunities for Brixmor Property and Plaza Retail
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brixmor and Plaza is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Plaza Retail REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Retail REIT 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 Plaza Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Retail REIT has no effect on the direction of Brixmor Property i.e., Brixmor Property and Plaza Retail go up and down completely randomly.
Pair Corralation between Brixmor Property and Plaza Retail
Considering the 90-day investment horizon Brixmor Property is expected to generate 0.33 times more return on investment than Plaza Retail. However, Brixmor Property is 3.08 times less risky than Plaza Retail. It trades about 0.06 of its potential returns per unit of risk. Plaza Retail REIT is currently generating about 0.02 per unit of risk. If you would invest 2,055 in Brixmor Property on August 24, 2024 and sell it today you would earn a total of 928.00 from holding Brixmor Property or generate 45.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.56% |
| Values | Daily Returns |
Brixmor Property vs. Plaza Retail REIT
Performance |
| Timeline |
| Brixmor Property |
| Plaza Retail REIT |
Brixmor Property and Plaza Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Plaza Retail
The main advantage of trading using opposite Brixmor Property and Plaza Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Plaza Retail 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 Plaza Retail will offset losses from the drop in Plaza Retail'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 |
| Plaza Retail vs. Choice Properties Real | Plaza Retail vs. CT Real Estate | Plaza Retail vs. Firm Capital Property | Plaza Retail vs. Slate Grocery REIT |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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