Correlation Between Seritage Growth and Brightspire Capital
Can any of the company-specific risk be diversified away by investing in both Seritage Growth and Brightspire Capital 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 Seritage Growth and Brightspire Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seritage Growth Properties and Brightspire Capital, you can compare the effects of market volatilities on Seritage Growth and Brightspire Capital 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 Seritage Growth with a short position of Brightspire Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seritage Growth and Brightspire Capital.
Diversification Opportunities for Seritage Growth and Brightspire Capital
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Seritage and Brightspire is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Seritage Growth Properties and Brightspire Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brightspire Capital and Seritage Growth 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 Seritage Growth Properties are associated (or correlated) with Brightspire Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brightspire Capital has no effect on the direction of Seritage Growth i.e., Seritage Growth and Brightspire Capital go up and down completely randomly.
Pair Corralation between Seritage Growth and Brightspire Capital
Considering the 90-day investment horizon Seritage Growth Properties is expected to under-perform the Brightspire Capital. But the stock apears to be less risky and, when comparing its historical volatility, Seritage Growth Properties is 1.43 times less risky than Brightspire Capital. The stock trades about -0.45 of its potential returns per unit of risk. The Brightspire Capital is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 579.00 in Brightspire Capital on November 18, 2024 and sell it today you would earn a total of 18.00 from holding Brightspire Capital or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seritage Growth Properties vs. Brightspire Capital
Performance |
| Timeline |
| Seritage Growth Prop |
| Brightspire Capital |
Seritage Growth and Brightspire Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seritage Growth and Brightspire Capital
The main advantage of trading using opposite Seritage Growth and Brightspire Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seritage Growth position performs unexpectedly, Brightspire Capital 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 Brightspire Capital will offset losses from the drop in Brightspire Capital's long position.| Seritage Growth vs. Site Centers Corp | Seritage Growth vs. Saul Centers | Seritage Growth vs. Acadia Realty Trust | Seritage Growth vs. Kite Realty Group |
| Brightspire Capital vs. Essential Properties Realty | Brightspire Capital vs. Armada Hflr Pr | Brightspire Capital vs. CTO Realty Growth | Brightspire Capital vs. Modiv Inc |
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.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| 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 | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |