Correlation Between Brandywine Realty and WEBUY GLOBAL

Can any of the company-specific risk be diversified away by investing in both Brandywine Realty and WEBUY GLOBAL 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 WEBUY GLOBAL 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 WEBUY GLOBAL LTD, you can compare the effects of market volatilities on Brandywine Realty and WEBUY GLOBAL 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 WEBUY GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywine Realty and WEBUY GLOBAL.

Diversification Opportunities for Brandywine Realty and WEBUY GLOBAL

0.44

Correlation Coefficient

Brandywine Realty  WEBUY GLOBAL

Very weak diversification

The 3 months correlation between Brandywine and WEBUY is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Brandywine Realty Trust and WEBUY GLOBAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEBUY GLOBAL LTD 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 WEBUY GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEBUY GLOBAL LTD has no effect on the direction of Brandywine Realty i.e., Brandywine Realty and WEBUY GLOBAL go up and down completely randomly.

Pair Corralation between Brandywine Realty and WEBUY GLOBAL

Considering the 90-day investment horizon Brandywine Realty Trust is expected to generate 0.11 times more return on investment than WEBUY GLOBAL. However, Brandywine Realty Trust is 9.4 times less risky than WEBUY GLOBAL. It trades about -0.09 of its potential returns per unit of risk. WEBUY GLOBAL LTD is currently generating about -0.01 per unit of risk. If you would invest  524.00  in Brandywine Realty Trust on December 20, 2024 and sell it today you would lose (62.00) from holding Brandywine Realty Trust or give up 11.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Brandywine Realty Trust  vs.  WEBUY GLOBAL LTD

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 latest inconsistent performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

WEBUY GLOBAL LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days WEBUY GLOBAL LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Brandywine Realty and WEBUY GLOBAL

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

The idea behind Brandywine Realty Trust and WEBUY GLOBAL LTD 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.