Correlation Between Armada Hflr and Brixmor Property

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

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

Diversification Opportunities for Armada Hflr and Brixmor Property

-0.01

Correlation Coefficient

Armada Hflr  Brixmor Property

Good diversification

The 3 months correlation between Armada and Brixmor is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Brixmor Property go up and down completely randomly.

Pair Corralation between Armada Hflr and Brixmor Property

Considering the 90-day investment horizon Armada Hflr is expected to generate 4.54 times less return on investment than Brixmor Property. In addition to that, Armada Hflr is 1.58 times more volatile than Brixmor Property. It trades about 0.03 of its total potential returns per unit of risk. Brixmor Property is currently generating about 0.23 per unit of volatility. If you would invest  2,489  in Brixmor Property on August 12, 2024 and sell it today you would earn a total of  385.00  from holding Brixmor Property or generate 15.47% return on investment over 90 days.

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

Armada Hflr Pr  vs.  Brixmor Property

Armada Hflr Pr

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Armada Hflr Pr are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Armada Hflr is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Brixmor Property

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Brixmor Property are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Brixmor Property showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Armada Hflr and Brixmor Property

The main advantage of trading using opposite Armada Hflr and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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 Armada Hflr Pr 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.