Correlation Between Brixmor Property and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Acadia Realty 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 Acadia Realty 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 Acadia Realty Trust, you can compare the effects of market volatilities on Brixmor Property and Acadia Realty 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 Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Acadia Realty.
Diversification Opportunities for Brixmor Property and Acadia Realty
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brixmor and Acadia is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property Group and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust 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 Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of Brixmor Property i.e., Brixmor Property and Acadia Realty go up and down completely randomly.
Pair Corralation between Brixmor Property and Acadia Realty
Assuming the 90 days horizon Brixmor Property Group is expected to under-perform the Acadia Realty. But the stock apears to be less risky and, when comparing its historical volatility, Brixmor Property Group is 1.34 times less risky than Acadia Realty. The stock trades about -0.16 of its potential returns per unit of risk. The Acadia Realty Trust is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,240 in Acadia Realty Trust on November 7, 2024 and sell it today you would lose (40.00) from holding Acadia Realty Trust or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Brixmor Property Group vs. Acadia Realty Trust
Performance |
| Timeline |
| Brixmor Property |
| Acadia Realty Trust |
Brixmor Property and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Acadia Realty
The main advantage of trading using opposite Brixmor Property and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Acadia Realty 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.| Brixmor Property vs. Realty Income | Brixmor Property vs. Link Real Estate | Brixmor Property vs. Superior Plus Corp | Brixmor Property vs. Intel |
| Acadia Realty vs. BROADWIND ENRGY | Acadia Realty vs. SPARTAN STORES | Acadia Realty vs. Fukuyama Transporting Co | Acadia Realty vs. COPLAND ROAD CAPITAL |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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