Correlation Between Brixmor Property and Welltower
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Welltower 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 Welltower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and Welltower, you can compare the effects of market volatilities on Brixmor Property and Welltower 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 Welltower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Welltower.
Diversification Opportunities for Brixmor Property and Welltower
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brixmor and Welltower is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Welltower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Welltower 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 Welltower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Welltower has no effect on the direction of Brixmor Property i.e., Brixmor Property and Welltower go up and down completely randomly.
Pair Corralation between Brixmor Property and Welltower
Considering the 90-day investment horizon Brixmor Property is expected to generate 1.22 times less return on investment than Welltower. In addition to that, Brixmor Property is 1.1 times more volatile than Welltower. It trades about 0.13 of its total potential returns per unit of risk. Welltower is currently generating about 0.17 per unit of volatility. If you would invest 8,705 in Welltower on August 26, 2024 and sell it today you would earn a total of 5,086 from holding Welltower or generate 58.43% 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. Welltower
Performance |
| Timeline |
| Brixmor Property |
| Welltower |
Brixmor Property and Welltower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Welltower
The main advantage of trading using opposite Brixmor Property and Welltower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Welltower 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 Welltower will offset losses from the drop in Welltower'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 |
| Welltower vs. Healthcare Realty Trust | Welltower vs. Sabra Healthcare REIT | Welltower vs. National Health Investors | Welltower vs. Global Medical 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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