Correlation Between Tanger Factory and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Tanger Factory 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 Tanger Factory and Brixmor Property 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 Brixmor Property, you can compare the effects of market volatilities on Tanger Factory 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 Tanger Factory with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanger Factory and Brixmor Property.
Diversification Opportunities for Tanger Factory and Brixmor Property
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tanger and Brixmor is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Tanger Factory Outlet and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property 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 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 Tanger Factory i.e., Tanger Factory and Brixmor Property go up and down completely randomly.
Pair Corralation between Tanger Factory and Brixmor Property
Considering the 90-day investment horizon Tanger Factory Outlet is expected to generate 0.92 times more return on investment than Brixmor Property. However, Tanger Factory Outlet is 1.08 times less risky than Brixmor Property. It trades about 0.01 of its potential returns per unit of risk. Brixmor Property is currently generating about -0.01 per unit of risk. If you would invest 3,319 in Tanger Factory Outlet on November 1, 2024 and sell it today you would earn a total of 12.00 from holding Tanger Factory Outlet or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tanger Factory Outlet vs. Brixmor Property
Performance |
| Timeline |
| Tanger Factory Outlet |
| Brixmor Property |
Tanger Factory and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanger Factory and Brixmor Property
The main advantage of trading using opposite Tanger Factory and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanger Factory 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.| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Brixmor Property |
| Brixmor Property vs. Site Centers Corp | Brixmor Property vs. Rithm Property Trust | Brixmor Property vs. Acadia Realty Trust | Brixmor Property vs. Netstreit 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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