Correlation Between HEALTHCARE REAL and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both HEALTHCARE REAL 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 HEALTHCARE REAL and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEALTHCARE REAL A and Brixmor Property Group, you can compare the effects of market volatilities on HEALTHCARE REAL 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 HEALTHCARE REAL with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEALTHCARE REAL and Brixmor Property.
Diversification Opportunities for HEALTHCARE REAL and Brixmor Property
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HEALTHCARE and Brixmor is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HEALTHCARE REAL A and Brixmor Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and HEALTHCARE REAL 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 HEALTHCARE REAL A 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 HEALTHCARE REAL i.e., HEALTHCARE REAL and Brixmor Property go up and down completely randomly.
Pair Corralation between HEALTHCARE REAL and Brixmor Property
Assuming the 90 days horizon HEALTHCARE REAL is expected to generate 2.68 times less return on investment than Brixmor Property. In addition to that, HEALTHCARE REAL is 1.16 times more volatile than Brixmor Property Group. It trades about 0.02 of its total potential returns per unit of risk. Brixmor Property Group is currently generating about 0.06 per unit of volatility. If you would invest 1,913 in Brixmor Property Group on September 2, 2024 and sell it today you would earn a total of 907.00 from holding Brixmor Property Group or generate 47.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEALTHCARE REAL A vs. Brixmor Property Group
Performance |
| Timeline |
| HEALTHCARE REAL A |
| Brixmor Property |
HEALTHCARE REAL and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEALTHCARE REAL and Brixmor Property
The main advantage of trading using opposite HEALTHCARE REAL and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEALTHCARE REAL 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.| HEALTHCARE REAL vs. Apple Inc | HEALTHCARE REAL vs. Apple Inc | HEALTHCARE REAL vs. Apple Inc | HEALTHCARE REAL vs. Apple Inc |
| Brixmor Property vs. Singapore Airlines Limited | Brixmor Property vs. Aegean Airlines SA | Brixmor Property vs. Alfa Financial Software | Brixmor Property vs. American Airlines Group |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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