Correlation Between Brixmor Property and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Tanger Factory 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 Tanger Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and Tanger Factory Outlet, you can compare the effects of market volatilities on Brixmor Property and Tanger Factory 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 Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Tanger Factory.
Diversification Opportunities for Brixmor Property and Tanger Factory
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Brixmor and Tanger is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet 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 Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of Brixmor Property i.e., Brixmor Property and Tanger Factory go up and down completely randomly.
Pair Corralation between Brixmor Property and Tanger Factory
Considering the 90-day investment horizon Brixmor Property is expected to under-perform the Tanger Factory. In addition to that, Brixmor Property is 1.08 times more volatile than Tanger Factory Outlet. It trades about -0.01 of its total potential returns per unit of risk. Tanger Factory Outlet is currently generating about 0.01 per unit of volatility. If you would invest 3,319 in Tanger Factory Outlet on November 1, 2024 and sell it today you would earn a total of 12.00 from holding Tanger Factory Outlet or generate 0.36% 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. Tanger Factory Outlet
Performance |
| Timeline |
| Brixmor Property |
| Tanger Factory Outlet |
Brixmor Property and Tanger Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Tanger Factory
The main advantage of trading using opposite Brixmor Property and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory's 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 |
| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Brixmor Property |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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