Correlation Between Wheeler Real and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Wheeler Real 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 Wheeler Real and Brixmor Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wheeler Real Estate and Brixmor Property, you can compare the effects of market volatilities on Wheeler Real 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 Wheeler Real with a short position of Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheeler Real and Brixmor Property.
Diversification Opportunities for Wheeler Real and Brixmor Property
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wheeler and Brixmor is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Wheeler Real Estate and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Wheeler Real 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 Wheeler Real Estate 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 Wheeler Real i.e., Wheeler Real and Brixmor Property go up and down completely randomly.
Pair Corralation between Wheeler Real and Brixmor Property
Assuming the 90 days horizon Wheeler Real Estate is expected to under-perform the Brixmor Property. In addition to that, Wheeler Real is 3.22 times more volatile than Brixmor Property. It trades about -0.02 of its total potential returns per unit of risk. Brixmor Property is currently generating about 0.58 per unit of volatility. If you would invest 2,695 in Brixmor Property on September 1, 2024 and sell it today you would earn a total of 312.00 from holding Brixmor Property or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Wheeler Real Estate vs. Brixmor Property
Performance |
| Timeline |
| Wheeler Real Estate |
| Brixmor Property |
Wheeler Real and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheeler Real and Brixmor Property
The main advantage of trading using opposite Wheeler Real and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheeler Real 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.| Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Saul Centers | Wheeler Real vs. Wheeler Real Estate |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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