Correlation Between Four Corners and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Four Corners 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 Four Corners and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Four Corners Property and Brixmor Property, you can compare the effects of market volatilities on Four Corners 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 Four Corners with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Four Corners and Brixmor Property.
Diversification Opportunities for Four Corners and Brixmor Property
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Four and Brixmor is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Four Corners Property and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Four Corners 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 Four Corners Property 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 Four Corners i.e., Four Corners and Brixmor Property go up and down completely randomly.
Pair Corralation between Four Corners and Brixmor Property
Given the investment horizon of 90 days Four Corners Property is expected to generate 0.95 times more return on investment than Brixmor Property. However, Four Corners Property is 1.05 times less risky than Brixmor Property. It trades about 0.04 of its potential returns per unit of risk. Brixmor Property is currently generating about -0.01 per unit of risk. If you would invest 2,702 in Four Corners Property on November 1, 2024 and sell it today you would earn a total of 65.00 from holding Four Corners Property or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Four Corners Property vs. Brixmor Property
Performance |
| Timeline |
| Four Corners Property |
| Brixmor Property |
Four Corners and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Four Corners and Brixmor Property
The main advantage of trading using opposite Four Corners and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Four Corners 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.| Four Corners vs. Alpineome Property Trust | Four Corners vs. Rithm Property Trust | Four Corners vs. Kite Realty Group | Four Corners vs. Inventrust Properties Corp |
| Brixmor Property vs. Site Centers Corp | Brixmor Property vs. Rithm Property Trust | Brixmor Property vs. Acadia Realty Trust | Brixmor Property vs. Netstreit Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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