Correlation Between Brixmor Property and Realty Income
Can any of the company-specific risk be diversified away by investing in both Brixmor Property and Realty Income 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 Realty Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixmor Property and Realty Income Corp, you can compare the effects of market volatilities on Brixmor Property and Realty Income 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 Realty Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Realty Income.
Diversification Opportunities for Brixmor Property and Realty Income
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Brixmor and Realty is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Realty Income Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Realty me Corp 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 are associated (or correlated) with Realty Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Realty me Corp has no effect on the direction of Brixmor Property i.e., Brixmor Property and Realty Income go up and down completely randomly.
Pair Corralation between Brixmor Property and Realty Income
Considering the 90-day investment horizon Brixmor Property is expected to generate 1.18 times more return on investment than Realty Income. However, Brixmor Property is 1.18 times more volatile than Realty Income Corp. It trades about 0.01 of its potential returns per unit of risk. Realty Income Corp is currently generating about -0.03 per unit of risk. If you would invest 2,124 in Brixmor Property on January 25, 2024 and sell it today you would earn a total of 59.00 from holding Brixmor Property or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brixmor Property vs. Realty Income Corp
Performance |
| Timeline |
| Brixmor Property |
| Realty me Corp |
Brixmor Property and Realty Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixmor Property and Realty Income
The main advantage of trading using opposite Brixmor Property and Realty Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixmor Property position performs unexpectedly, Realty Income 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 Realty Income will offset losses from the drop in Realty Income's long position.| Brixmor Property vs. Site Centers Corp | Brixmor Property vs. Acadia Realty Trust | Brixmor Property vs. NetstreitCorp | Brixmor Property vs. Urban Edge Properties |
| Realty Income vs. Federal Realty Investment | Realty Income vs. Macerich Company | Realty Income vs. National Retail Properties | Realty Income vs. Kimco Realty |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |