Correlation Between Sun Communities and BRT Realty
Can any of the company-specific risk be diversified away by investing in both Sun Communities and BRT Realty 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 Sun Communities and BRT Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Communities and BRT Realty Trust, you can compare the effects of market volatilities on Sun Communities and BRT Realty 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 Sun Communities with a short position of BRT Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Communities and BRT Realty.
Diversification Opportunities for Sun Communities and BRT Realty
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sun and BRT is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sun Communities and BRT Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRT Realty Trust and Sun Communities 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 Sun Communities are associated (or correlated) with BRT Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRT Realty Trust has no effect on the direction of Sun Communities i.e., Sun Communities and BRT Realty go up and down completely randomly.
Pair Corralation between Sun Communities and BRT Realty
Considering the 90-day investment horizon Sun Communities is expected to generate 1.04 times more return on investment than BRT Realty. However, Sun Communities is 1.04 times more volatile than BRT Realty Trust. It trades about 0.04 of its potential returns per unit of risk. BRT Realty Trust is currently generating about 0.02 per unit of risk. If you would invest 12,380 in Sun Communities on December 25, 2024 and sell it today you would earn a total of 433.00 from holding Sun Communities or generate 3.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sun Communities vs. BRT Realty Trust
Performance |
Timeline |
Sun Communities |
BRT Realty Trust |
Sun Communities and BRT Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Communities and BRT Realty
The main advantage of trading using opposite Sun Communities and BRT Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Communities position performs unexpectedly, BRT Realty 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 BRT Realty will offset losses from the drop in BRT Realty's long position.Sun Communities vs. Clipper Realty | Sun Communities vs. UDR Inc | Sun Communities vs. UMH Properties | Sun Communities vs. American Homes 4 |
BRT Realty vs. Nexpoint Residential Trust | BRT Realty vs. Centerspace | BRT Realty vs. Veris Residential | BRT Realty vs. Apartment Investment and |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |