Correlation Between Smart REIT and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Smart REIT and Brixmor 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 Smart REIT and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart REIT and Brixmor Property, you can compare the effects of market volatilities on Smart REIT and Brixmor 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 Smart REIT with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart REIT and Brixmor Property.
Diversification Opportunities for Smart REIT and Brixmor Property
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Smart and Brixmor is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Smart REIT and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Smart REIT 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 Smart REIT are associated (or correlated) with Brixmor Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brixmor Property has no effect on the direction of Smart REIT i.e., Smart REIT and Brixmor Property go up and down completely randomly.
Pair Corralation between Smart REIT and Brixmor Property
Assuming the 90 days horizon Smart REIT is expected to generate 3.1 times less return on investment than Brixmor Property. In addition to that, Smart REIT is 2.27 times more volatile than Brixmor Property. It trades about 0.01 of its total potential returns per unit of risk. Brixmor Property is currently generating about 0.06 per unit of volatility. If you would invest 2,055 in Brixmor Property on August 24, 2024 and sell it today you would earn a total of 928.00 from holding Brixmor Property or generate 45.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.78% |
| Values | Daily Returns |
Smart REIT vs. Brixmor Property
Performance |
| Timeline |
| Smart REIT |
| Brixmor Property |
Smart REIT and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart REIT and Brixmor Property
The main advantage of trading using opposite Smart REIT and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart REIT position performs unexpectedly, Brixmor 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 Brixmor Property will offset losses from the drop in Brixmor Property's long position.| Smart REIT vs. Phillips Edison Co | Smart REIT vs. Choice Properties Real | Smart REIT vs. Simon Property Group | Smart REIT vs. Plaza Retail REIT |
| Brixmor Property vs. Site Centers Corp | Brixmor Property vs. Acadia Realty Trust | Brixmor Property vs. Netstreit Corp | Brixmor Property vs. Urban Edge Properties |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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