Correlation Between BRT Realty and Camden Property
Can any of the company-specific risk be diversified away by investing in both BRT Realty and Camden 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 BRT Realty and Camden Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRT Realty Trust and Camden Property Trust, you can compare the effects of market volatilities on BRT Realty and Camden 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 BRT Realty with a short position of Camden Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRT Realty and Camden Property.
Diversification Opportunities for BRT Realty and Camden Property
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BRT and Camden is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding BRT Realty Trust and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property Trust and BRT Realty 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 BRT Realty Trust are associated (or correlated) with Camden Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of BRT Realty i.e., BRT Realty and Camden Property go up and down completely randomly.
Pair Corralation between BRT Realty and Camden Property
Considering the 90-day investment horizon BRT Realty Trust is expected to generate 1.39 times more return on investment than Camden Property. However, BRT Realty is 1.39 times more volatile than Camden Property Trust. It trades about 0.18 of its potential returns per unit of risk. Camden Property Trust is currently generating about 0.07 per unit of risk. If you would invest 1,612 in BRT Realty Trust on January 25, 2024 and sell it today you would earn a total of 152.00 from holding BRT Realty Trust or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRT Realty Trust vs. Camden Property Trust
Performance |
| Timeline |
| BRT Realty Trust |
| Camden Property Trust |
BRT Realty and Camden Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRT Realty and Camden Property
The main advantage of trading using opposite BRT Realty and Camden Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRT Realty position performs unexpectedly, Camden 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 Camden Property will offset losses from the drop in Camden Property's long position.| BRT Realty vs. Nexpoint Residential Trust | BRT Realty vs. Centerspace | BRT Realty vs. Veris Residential | BRT Realty vs. Apartment Income REIT |
| Camden Property vs. AvalonBay Communities | Camden Property vs. Essex Property Trust | Camden Property vs. Equity Residential | Camden Property vs. UDR Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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