Correlation Between Regency Centers and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Regency Centers 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 Regency Centers and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regency Centers and Brixmor Property, you can compare the effects of market volatilities on Regency Centers 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 Regency Centers with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regency Centers and Brixmor Property.
Diversification Opportunities for Regency Centers and Brixmor Property
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regency and Brixmor is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Regency Centers and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Regency Centers 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 Regency Centers 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 Regency Centers i.e., Regency Centers and Brixmor Property go up and down completely randomly.
Pair Corralation between Regency Centers and Brixmor Property
Considering the 90-day investment horizon Regency Centers is expected to generate 1.56 times less return on investment than Brixmor Property. But when comparing it to its historical volatility, Regency Centers is 1.11 times less risky than Brixmor Property. It trades about 0.06 of its potential returns per unit of risk. Brixmor Property is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,985 in Brixmor Property on August 24, 2024 and sell it today you would earn a total of 998.00 from holding Brixmor Property or generate 50.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regency Centers vs. Brixmor Property
Performance |
| Timeline |
| Regency Centers |
| Brixmor Property |
Regency Centers and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regency Centers and Brixmor Property
The main advantage of trading using opposite Regency Centers and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regency Centers 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.| Regency Centers vs. Federal Realty Investment | Regency Centers vs. Agree Realty | Regency Centers vs. Tanger Factory Outlet | Regency Centers vs. Netstreit Corp |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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