Correlation Between Site Centers and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Site 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 Site 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 Site Centers Corp and Brixmor Property, you can compare the effects of market volatilities on Site 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 Site Centers with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Brixmor Property.
Diversification Opportunities for Site Centers and Brixmor Property
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Site and Brixmor is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Site 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 Site Centers Corp 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 Site Centers i.e., Site Centers and Brixmor Property go up and down completely randomly.
Pair Corralation between Site Centers and Brixmor Property
Given the investment horizon of 90 days Site Centers Corp is expected to under-perform the Brixmor Property. In addition to that, Site Centers is 1.43 times more volatile than Brixmor Property. It trades about -0.14 of its total potential returns per unit of risk. Brixmor Property is currently generating about 0.35 per unit of volatility. If you would invest 2,773 in Brixmor Property on August 27, 2024 and sell it today you would earn a total of 229.00 from holding Brixmor Property or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Brixmor Property
Performance |
| Timeline |
| Site Centers Corp |
| Brixmor Property |
Site Centers and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Brixmor Property
The main advantage of trading using opposite Site Centers and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site 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.| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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