Correlation Between Brandywine Realty and Centene

Can any of the company-specific risk be diversified away by investing in both Brandywine Realty and Centene 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 Brandywine Realty and Centene into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brandywine Realty Trust and Centene 3375 percent, you can compare the effects of market volatilities on Brandywine Realty and Centene 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 Brandywine Realty with a short position of Centene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywine Realty and Centene.

Diversification Opportunities for Brandywine Realty and Centene

-0.56

Correlation Coefficient

Brandywine Realty  Centene

Excellent diversification

The 3 months correlation between Brandywine and Centene is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Brandywine Realty Trust and Centene 3375 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centene 3375 percent and Brandywine Realty 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 Brandywine Realty Trust are associated (or correlated) with Centene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centene 3375 percent has no effect on the direction of Brandywine Realty i.e., Brandywine Realty and Centene go up and down completely randomly.

Pair Corralation between Brandywine Realty and Centene

Considering the 90-day investment horizon Brandywine Realty Trust is expected to under-perform the Centene. In addition to that, Brandywine Realty is 6.3 times more volatile than Centene 3375 percent. It trades about -0.14 of its total potential returns per unit of risk. Centene 3375 percent is currently generating about 0.01 per unit of volatility. If you would invest  8,902  in Centene 3375 percent on December 25, 2024 and sell it today you would earn a total of  14.00  from holding Centene 3375 percent or generate 0.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.72%
Values	Daily Returns

Brandywine Realty Trust  vs.  Centene 3375 percent

Brandywine Realty Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brandywine Realty Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Centene 3375 percent

Risk-Adjusted Performance

Weak

Over the last 90 days Centene 3375 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Centene is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Brandywine Realty and Centene

The main advantage of trading using opposite Brandywine Realty and Centene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywine Realty position performs unexpectedly, Centene 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 Centene will offset losses from the drop in Centene's long position.

The idea behind Brandywine Realty Trust and Centene 3375 percent pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.