Correlation Between Brixmor Property and Firan Technology

Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Firan Technology 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 Firan Technology 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 Firan Technology Group, you can compare the effects of market volatilities on Brixmor Property and Firan Technology 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 Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Firan Technology.

Diversification Opportunities for Brixmor Property and Firan Technology

0.55

Correlation Coefficient

Brixmor Property  Firan Technology

Very weak diversification

The 3 months correlation between Brixmor and Firan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property Group and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology 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 Firan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firan Technology has no effect on the direction of Brixmor Property i.e., Brixmor Property and Firan Technology go up and down completely randomly.

Pair Corralation between Brixmor Property and Firan Technology

Assuming the 90 days horizon Brixmor Property Group is expected to generate 0.67 times more return on investment than Firan Technology. However, Brixmor Property Group is 1.49 times less risky than Firan Technology. It trades about -0.09 of its potential returns per unit of risk. Firan Technology Group is currently generating about -0.07 per unit of risk. If you would invest  2,572  in Brixmor Property Group on December 21, 2024 and sell it today you would lose (212.00) from holding Brixmor Property Group or give up 8.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Brixmor Property Group  vs.  Firan Technology Group

Brixmor Property

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brixmor Property Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Firan Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Firan Technology Group 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 stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Brixmor Property and Firan Technology

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

The idea behind Brixmor Property Group and Firan Technology Group 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.