Correlation Between Tanger Factory and Broadstone Net
Can any of the company-specific risk be diversified away by investing in both Tanger Factory and Broadstone Net 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 Tanger Factory and Broadstone Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tanger Factory Outlet and Broadstone Net Lease, you can compare the effects of market volatilities on Tanger Factory and Broadstone Net 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 Tanger Factory with a short position of Broadstone Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanger Factory and Broadstone Net.
Diversification Opportunities for Tanger Factory and Broadstone Net
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tanger and Broadstone is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Tanger Factory Outlet and Broadstone Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadstone Net Lease and Tanger Factory 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 Tanger Factory Outlet are associated (or correlated) with Broadstone Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadstone Net Lease has no effect on the direction of Tanger Factory i.e., Tanger Factory and Broadstone Net go up and down completely randomly.
Pair Corralation between Tanger Factory and Broadstone Net
Considering the 90-day investment horizon Tanger Factory Outlet is expected to generate 1.06 times more return on investment than Broadstone Net. However, Tanger Factory is 1.06 times more volatile than Broadstone Net Lease. It trades about 0.1 of its potential returns per unit of risk. Broadstone Net Lease is currently generating about 0.02 per unit of risk. If you would invest 2,673 in Tanger Factory Outlet on August 25, 2024 and sell it today you would earn a total of 976.00 from holding Tanger Factory Outlet or generate 36.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tanger Factory Outlet vs. Broadstone Net Lease
Performance |
| Timeline |
| Tanger Factory Outlet |
| Broadstone Net Lease |
Tanger Factory and Broadstone Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanger Factory and Broadstone Net
The main advantage of trading using opposite Tanger Factory and Broadstone Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanger Factory position performs unexpectedly, Broadstone Net 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 Broadstone Net will offset losses from the drop in Broadstone Net's long position.| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Brixmor Property |
| Broadstone Net vs. Boston Properties | Broadstone Net vs. Alexandria Real Estate | Broadstone Net vs. Highwoods Properties | Broadstone Net vs. Hudson Pacific 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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