Correlation Between Brixmor Property and Anheuser Busch

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

By analyzing existing cross correlation between Brixmor Property Group and Anheuser Busch InBev SANV, you can compare the effects of market volatilities on Brixmor Property and Anheuser Busch 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 Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Anheuser Busch.

Diversification Opportunities for Brixmor Property and Anheuser Busch

-0.58

Correlation Coefficient

Brixmor Property  Anheuser Busch

Excellent diversification

The 3 months correlation between Brixmor and Anheuser is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property Group and Anheuser Busch InBev SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch InBev 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 Group are associated (or correlated) with Anheuser Busch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anheuser Busch InBev has no effect on the direction of Brixmor Property i.e., Brixmor Property and Anheuser Busch go up and down completely randomly.

Pair Corralation between Brixmor Property and Anheuser Busch

Assuming the 90 days horizon Brixmor Property Group is expected to generate 0.99 times more return on investment than Anheuser Busch. However, Brixmor Property Group is 1.01 times less risky than Anheuser Busch. It trades about 0.13 of its potential returns per unit of risk. Anheuser Busch InBev SANV is currently generating about -0.29 per unit of risk. If you would invest  2,433  in Brixmor Property Group on October 7, 2024 and sell it today you would earn a total of  227.00  from holding Brixmor Property Group or generate 9.33% return on investment over 90 days.

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

Brixmor Property Group  vs.  Anheuser Busch InBev SANV

Brixmor Property

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brixmor Property Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Brixmor Property may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Anheuser Busch InBev

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anheuser Busch InBev SANV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Brixmor Property and Anheuser Busch

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

The idea behind Brixmor Property Group and Anheuser Busch InBev SANV 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.