Correlation Between Brixmor Property and Primaris Real

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

By analyzing existing cross correlation between Brixmor Property and Primaris Real Estate, you can compare the effects of market volatilities on Brixmor Property and Primaris Real 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 Brixmor Property with a short position of Primaris Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Primaris Real.

Diversification Opportunities for Brixmor Property and Primaris Real

-0.34

Correlation Coefficient

Brixmor Property  Primaris Real

Very good diversification

The 3 months correlation between Brixmor and Primaris is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Primaris Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris Real Estate and Brixmor 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 Brixmor Property are associated (or correlated) with Primaris Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Real Estate has no effect on the direction of Brixmor Property i.e., Brixmor Property and Primaris Real go up and down completely randomly.

Pair Corralation between Brixmor Property and Primaris Real

Considering the 90-day investment horizon Brixmor Property is expected to generate 0.97 times more return on investment than Primaris Real. However, Brixmor Property is 1.03 times less risky than Primaris Real. It trades about 0.1 of its potential returns per unit of risk. Primaris Real Estate is currently generating about 0.04 per unit of risk. If you would invest  2,127  in Brixmor Property on October 2, 2024 and sell it today you would earn a total of  641.00  from holding Brixmor Property or generate 30.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.56%
Values	Daily Returns

Brixmor Property  vs.  Primaris Real Estate

Brixmor Property

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brixmor Property has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Brixmor Property is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Primaris Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Primaris Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Brixmor Property and Primaris Real

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

The idea behind Brixmor Property and Primaris Real Estate 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .