Correlation Between Brixmor Property and Regency Centers
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Regency Centers 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 Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and Regency Centers, you can compare the effects of market volatilities on Brixmor Property and Regency Centers 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 Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Regency Centers.
Diversification Opportunities for Brixmor Property and Regency Centers
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brixmor and Regency is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers 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 Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Brixmor Property i.e., Brixmor Property and Regency Centers go up and down completely randomly.
Pair Corralation between Brixmor Property and Regency Centers
Considering the 90-day investment horizon Brixmor Property is expected to under-perform the Regency Centers. In addition to that, Brixmor Property is 1.11 times more volatile than Regency Centers. It trades about -0.01 of its total potential returns per unit of risk. Regency Centers is currently generating about 0.03 per unit of volatility. If you would invest 7,075 in Regency Centers on November 1, 2024 and sell it today you would earn a total of 121.00 from holding Regency Centers or generate 1.71% 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. Regency Centers
Performance |
| Timeline |
| Brixmor Property |
| Regency Centers |
Brixmor Property and Regency Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Regency Centers
The main advantage of trading using opposite Brixmor Property and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Regency Centers 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 Regency Centers will offset losses from the drop in Regency Centers' long position.| Brixmor Property vs. Site Centers Corp | Brixmor Property vs. Rithm Property Trust | Brixmor Property vs. Acadia Realty Trust | Brixmor Property vs. Netstreit Corp |
| Regency Centers vs. Saul Centers | Regency Centers vs. Retail Opportunity Investments | Regency Centers vs. Rithm Property Trust | Regency Centers vs. Getty Realty |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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