Correlation Between Brixmor Property and Simon Property
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Simon Property 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 Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and Simon Property Group, you can compare the effects of market volatilities on Brixmor Property and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Simon Property.
Diversification Opportunities for Brixmor Property and Simon Property
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brixmor and Simon is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Brixmor Property i.e., Brixmor Property and Simon Property go up and down completely randomly.
Pair Corralation between Brixmor Property and Simon Property
Considering the 90-day investment horizon Brixmor Property is expected to generate 1.0 times more return on investment than Simon Property. However, Brixmor Property is 1.0 times more volatile than Simon Property Group. It trades about 0.35 of its potential returns per unit of risk. Simon Property Group is currently generating about 0.19 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brixmor Property vs. Simon Property Group
Performance |
| Timeline |
| Brixmor Property |
| Simon Property Group |
Brixmor Property and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Simon Property
The main advantage of trading using opposite Brixmor Property and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property'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 |
| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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