Correlation Between Brixmor Property and Urban Edge
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Urban Edge 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 Urban Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and Urban Edge Properties, you can compare the effects of market volatilities on Brixmor Property and Urban Edge 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 Urban Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Urban Edge.
Diversification Opportunities for Brixmor Property and Urban Edge
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brixmor and Urban is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Urban Edge Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Edge Properties 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 Urban Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Edge Properties has no effect on the direction of Brixmor Property i.e., Brixmor Property and Urban Edge go up and down completely randomly.
Pair Corralation between Brixmor Property and Urban Edge
Considering the 90-day investment horizon Brixmor Property is expected to generate 0.94 times more return on investment than Urban Edge. However, Brixmor Property is 1.07 times less risky than Urban Edge. It trades about -0.06 of its potential returns per unit of risk. Urban Edge Properties is currently generating about -0.11 per unit of risk. If you would invest 2,946 in Brixmor Property on December 1, 2024 and sell it today you would lose (150.00) from holding Brixmor Property or give up 5.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Brixmor Property vs. Urban Edge Properties
Performance |
Timeline |
Brixmor Property |
Urban Edge Properties |
Brixmor Property and Urban Edge Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brixmor Property and Urban Edge
The main advantage of trading using opposite Brixmor Property and Urban Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Urban Edge 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 Urban Edge will offset losses from the drop in Urban Edge's long position.Brixmor Property vs. Site Centers Corp | Brixmor Property vs. Rithm Property Trust | Brixmor Property vs. Acadia Realty Trust | Brixmor Property vs. Netstreit Corp |
Urban Edge vs. Saul Centers | Urban Edge vs. Rithm Property Trust | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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