Correlation Between Plaza Retail and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Plaza Retail 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 Plaza Retail and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plaza Retail REIT and Brixmor Property, you can compare the effects of market volatilities on Plaza Retail 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 Plaza Retail with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Retail and Brixmor Property.
Diversification Opportunities for Plaza Retail and Brixmor Property
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Plaza and Brixmor is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Plaza Retail 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 Plaza Retail 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 Plaza Retail i.e., Plaza Retail and Brixmor Property go up and down completely randomly.
Pair Corralation between Plaza Retail and Brixmor Property
Assuming the 90 days horizon Plaza Retail is expected to generate 6.23 times less return on investment than Brixmor Property. In addition to that, Plaza Retail is 1.23 times more volatile than Brixmor Property. It trades about 0.02 of its total potential returns per unit of risk. Brixmor Property is currently generating about 0.13 per unit of volatility. If you would invest 2,169 in Brixmor Property on August 28, 2024 and sell it today you would earn a total of 833.00 from holding Brixmor Property or generate 38.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.68% |
| Values | Daily Returns |
Plaza Retail REIT vs. Brixmor Property
Performance |
| Timeline |
| Plaza Retail REIT |
| Brixmor Property |
Plaza Retail and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Retail and Brixmor Property
The main advantage of trading using opposite Plaza Retail and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Retail 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.| Plaza Retail vs. Choice Properties Real | Plaza Retail vs. CT Real Estate | Plaza Retail vs. Firm Capital Property | Plaza Retail vs. Slate Grocery 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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