Correlation Between Brixmor Property and AGF Management
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and AGF Management 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 AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property Group and AGF Management Limited, you can compare the effects of market volatilities on Brixmor Property and AGF Management 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 AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and AGF Management.
Diversification Opportunities for Brixmor Property and AGF Management
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brixmor and AGF is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property Group and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management 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 Group are associated (or correlated) with AGF Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF Management has no effect on the direction of Brixmor Property i.e., Brixmor Property and AGF Management go up and down completely randomly.
Pair Corralation between Brixmor Property and AGF Management
Assuming the 90 days horizon Brixmor Property Group is expected to generate 0.7 times more return on investment than AGF Management. However, Brixmor Property Group is 1.42 times less risky than AGF Management. It trades about 0.14 of its potential returns per unit of risk. AGF Management Limited is currently generating about -0.12 per unit of risk. If you would invest 2,700 in Brixmor Property Group on September 14, 2024 and sell it today you would earn a total of 60.00 from holding Brixmor Property Group or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brixmor Property Group vs. AGF Management Limited
Performance |
| Timeline |
| Brixmor Property |
| AGF Management |
Brixmor Property and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and AGF Management
The main advantage of trading using opposite Brixmor Property and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, AGF Management 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 AGF Management will offset losses from the drop in AGF Management's long position.| Brixmor Property vs. AGF Management Limited | Brixmor Property vs. Zurich Insurance Group | Brixmor Property vs. Insurance Australia Group | Brixmor Property vs. Singapore Reinsurance |
| AGF Management vs. New Residential Investment | AGF Management vs. FIREWEED METALS P | AGF Management vs. REGAL ASIAN INVESTMENTS | AGF Management vs. CDL INVESTMENT |
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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