Correlation Between Brixmor Property and Phillips Edison
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Phillips Edison 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 Phillips Edison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and Phillips Edison Co, you can compare the effects of market volatilities on Brixmor Property and Phillips Edison 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 Phillips Edison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Phillips Edison.
Diversification Opportunities for Brixmor Property and Phillips Edison
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brixmor and Phillips is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Phillips Edison Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phillips Edison 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 Phillips Edison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phillips Edison has no effect on the direction of Brixmor Property i.e., Brixmor Property and Phillips Edison go up and down completely randomly.
Pair Corralation between Brixmor Property and Phillips Edison
Considering the 90-day investment horizon Brixmor Property is expected to generate 1.05 times more return on investment than Phillips Edison. However, Brixmor Property is 1.05 times more volatile than Phillips Edison Co. It trades about 0.13 of its potential returns per unit of risk. Phillips Edison Co is currently generating about 0.07 per unit of risk. If you would invest 2,169 in Brixmor Property on August 28, 2024 and sell it today you would earn a total of 833.00 from holding Brixmor Property or generate 38.4% 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. Phillips Edison Co
Performance |
| Timeline |
| Brixmor Property |
| Phillips Edison |
Brixmor Property and Phillips Edison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Phillips Edison
The main advantage of trading using opposite Brixmor Property and Phillips Edison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Phillips Edison 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 Phillips Edison will offset losses from the drop in Phillips Edison'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 |
| Phillips Edison vs. Site Centers Corp | Phillips Edison vs. Retail Opportunity Investments | Phillips Edison vs. Urban Edge Properties | Phillips Edison 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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