Correlation Between Penta-Ocean Construction and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Penta-Ocean Construction 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 Penta-Ocean Construction and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penta Ocean Construction Co and Brixmor Property Group, you can compare the effects of market volatilities on Penta-Ocean Construction 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 Penta-Ocean Construction with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penta-Ocean Construction and Brixmor Property.
Diversification Opportunities for Penta-Ocean Construction and Brixmor Property
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Penta-Ocean and Brixmor is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Penta Ocean Construction Co and Brixmor Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Penta-Ocean Construction 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 Penta Ocean Construction Co 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 Penta-Ocean Construction i.e., Penta-Ocean Construction and Brixmor Property go up and down completely randomly.
Pair Corralation between Penta-Ocean Construction and Brixmor Property
Assuming the 90 days horizon Penta Ocean Construction Co is expected to generate 0.91 times more return on investment than Brixmor Property. However, Penta Ocean Construction Co is 1.1 times less risky than Brixmor Property. It trades about 0.12 of its potential returns per unit of risk. Brixmor Property Group is currently generating about -0.05 per unit of risk. If you would invest 382.00 in Penta Ocean Construction Co on October 20, 2024 and sell it today you would earn a total of 10.00 from holding Penta Ocean Construction Co or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penta Ocean Construction Co vs. Brixmor Property Group
Performance |
| Timeline |
| Penta-Ocean Construction |
| Brixmor Property |
Penta-Ocean Construction and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penta-Ocean Construction and Brixmor Property
The main advantage of trading using opposite Penta-Ocean Construction and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penta-Ocean Construction 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.| Penta-Ocean Construction vs. THAI BEVERAGE | Penta-Ocean Construction vs. Coor Service Management | Penta-Ocean Construction vs. Elmos Semiconductor SE | Penta-Ocean Construction vs. GWILLI FOOD |
| Brixmor Property vs. Simon Property Group | Brixmor Property vs. Realty Income | Brixmor Property vs. Link Real Estate | Brixmor Property vs. Range Resources 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |