Correlation Between Retail Opportunity and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Retail Opportunity 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 Retail Opportunity and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Opportunity Investments and Brixmor Property, you can compare the effects of market volatilities on Retail Opportunity 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 Retail Opportunity with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Opportunity and Brixmor Property.
Diversification Opportunities for Retail Opportunity and Brixmor Property
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Retail and Brixmor is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Retail Opportunity Investments and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Retail Opportunity 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 Retail Opportunity Investments 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 Retail Opportunity i.e., Retail Opportunity and Brixmor Property go up and down completely randomly.
Pair Corralation between Retail Opportunity and Brixmor Property
Given the investment horizon of 90 days Retail Opportunity Investments is expected to generate 1.5 times more return on investment than Brixmor Property. However, Retail Opportunity is 1.5 times more volatile than Brixmor Property. It trades about 0.13 of its potential returns per unit of risk. Brixmor Property is currently generating about 0.16 per unit of risk. If you would invest 1,550 in Retail Opportunity Investments on August 28, 2024 and sell it today you would earn a total of 190.00 from holding Retail Opportunity Investments or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Opportunity Investments vs. Brixmor Property
Performance |
| Timeline |
| Retail Opportunity |
| Brixmor Property |
Retail Opportunity and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Opportunity and Brixmor Property
The main advantage of trading using opposite Retail Opportunity and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Opportunity 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.| Retail Opportunity vs. Kite Realty Group | Retail Opportunity vs. Urban Edge Properties | Retail Opportunity vs. Acadia Realty Trust |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings 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 | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |