Correlation Between Nomura Holdings and Brandywine Realty
Can any of the company-specific risk be diversified away by investing in both Nomura Holdings and Brandywine 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 Nomura Holdings and Brandywine Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomura Holdings ADR and Brandywine Realty Trust, you can compare the effects of market volatilities on Nomura Holdings and Brandywine 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 Nomura Holdings with a short position of Brandywine Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and Brandywine Realty.
Diversification Opportunities for Nomura Holdings and Brandywine Realty
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nomura and Brandywine is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings ADR and Brandywine Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandywine Realty Trust and Nomura Holdings 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 Nomura Holdings ADR are associated (or correlated) with Brandywine Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandywine Realty Trust has no effect on the direction of Nomura Holdings i.e., Nomura Holdings and Brandywine Realty go up and down completely randomly.
Pair Corralation between Nomura Holdings and Brandywine Realty
Considering the 90-day investment horizon Nomura Holdings ADR is expected to generate 0.69 times more return on investment than Brandywine Realty. However, Nomura Holdings ADR is 1.45 times less risky than Brandywine Realty. It trades about 0.06 of its potential returns per unit of risk. Brandywine Realty Trust is currently generating about 0.03 per unit of risk. If you would invest 393.00 in Nomura Holdings ADR on November 29, 2024 and sell it today you would earn a total of 266.00 from holding Nomura Holdings ADR or generate 67.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nomura Holdings ADR vs. Brandywine Realty Trust
Performance |
| Timeline |
| Nomura Holdings ADR |
| Brandywine Realty Trust |
Nomura Holdings and Brandywine Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomura Holdings and Brandywine Realty
The main advantage of trading using opposite Nomura Holdings and Brandywine Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Holdings position performs unexpectedly, Brandywine 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 Brandywine Realty will offset losses from the drop in Brandywine Realty's long position.| Nomura Holdings vs. Perella Weinberg Partners | Nomura Holdings vs. Oppenheimer Holdings | Nomura Holdings vs. Stifel Financial Corp | Nomura Holdings vs. Piper Sandler Companies |
| Brandywine Realty vs. Douglas Emmett | Brandywine Realty vs. Kilroy Realty Corp | Brandywine Realty vs. Piedmont Office Realty | Brandywine Realty vs. City Office |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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