Correlation Between Inventrust Properties and Brixmor Property

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

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

Diversification Opportunities for Inventrust Properties and Brixmor Property

0.85

Correlation Coefficient

Inventrust Properties  Brixmor Property

Very poor diversification

The 3 months correlation between Inventrust and Brixmor is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Inventrust Properties 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 Inventrust Properties Corp are associated (or correlated) with Brixmor Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brixmor Property has no effect on the direction of Inventrust Properties i.e., Inventrust Properties and Brixmor Property go up and down completely randomly.

Pair Corralation between Inventrust Properties and Brixmor Property

Considering the 90-day investment horizon Inventrust Properties is expected to generate 1.69 times less return on investment than Brixmor Property. In addition to that, Inventrust Properties is 1.11 times more volatile than Brixmor Property. It trades about 0.1 of its total potential returns per unit of risk. Brixmor Property is currently generating about 0.18 per unit of volatility. If you would invest  2,705  in Brixmor Property on September 1, 2024 and sell it today you would earn a total of  302.00  from holding Brixmor Property or generate 11.16% return on investment over 90 days.

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

Inventrust Properties Corp  vs.  Brixmor Property

Inventrust Properties

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Inventrust Properties Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Inventrust Properties may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Brixmor Property

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Brixmor Property are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Brixmor Property may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Inventrust Properties and Brixmor Property

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

The idea behind Inventrust Properties Corp and Brixmor Property 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.