Correlation Between Kimco Realty and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Kimco Realty 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 Kimco Realty and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Brixmor Property, you can compare the effects of market volatilities on Kimco Realty 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 Kimco Realty with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Brixmor Property.
Diversification Opportunities for Kimco Realty and Brixmor Property
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kimco and Brixmor is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Kimco Realty 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 Kimco Realty 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 Kimco Realty i.e., Kimco Realty and Brixmor Property go up and down completely randomly.
Pair Corralation between Kimco Realty and Brixmor Property
Assuming the 90 days trading horizon Kimco Realty is expected to under-perform the Brixmor Property. But the preferred stock apears to be less risky and, when comparing its historical volatility, Kimco Realty is 1.05 times less risky than Brixmor Property. The preferred stock trades about -0.13 of its potential returns per unit of risk. The Brixmor Property is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 2,773 in Brixmor Property on August 29, 2024 and sell it today you would earn a total of 255.00 from holding Brixmor Property or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Brixmor Property
Performance |
| Timeline |
| Kimco Realty |
| Brixmor Property |
Kimco Realty and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Brixmor Property
The main advantage of trading using opposite Kimco Realty and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty 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.| Kimco Realty vs. Saul Centers | Kimco Realty vs. Kimco Realty | Kimco Realty vs. Wheeler Real Estate | Kimco Realty vs. Macerich Company |
| Brixmor Property vs. CBL Associates Properties | Brixmor Property vs. Cedar Realty Trust | Brixmor Property vs. Simon Property Group | Brixmor Property vs. Realty Income |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |