Correlation Between Simon Property and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Simon Property 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 Simon Property and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Property Group and Brixmor Property, you can compare the effects of market volatilities on Simon Property 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 Simon Property with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Brixmor Property.
Diversification Opportunities for Simon Property and Brixmor Property
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simon and Brixmor is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Simon Property 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 Simon Property Group 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 Simon Property i.e., Simon Property and Brixmor Property go up and down completely randomly.
Pair Corralation between Simon Property and Brixmor Property
Considering the 90-day investment horizon Simon Property is expected to generate 1.33 times less return on investment than Brixmor Property. But when comparing it to its historical volatility, Simon Property Group is 1.01 times less risky than Brixmor Property. It trades about 0.19 of its potential returns per unit of risk. Brixmor Property is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,793 in Brixmor Property on August 24, 2024 and sell it today you would earn a total of 183.00 from holding Brixmor Property or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Brixmor Property
Performance |
| Timeline |
| Simon Property Group |
| Brixmor Property |
Simon Property and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Brixmor Property
The main advantage of trading using opposite Simon Property and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property 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.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Tanger Factory Outlet |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |