Correlation Between Macerich and DigitalBridge

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

By analyzing existing cross correlation between Macerich Company and DigitalBridge Group, you can compare the effects of market volatilities on Macerich and DigitalBridge 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 Macerich with a short position of DigitalBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macerich and DigitalBridge.

Diversification Opportunities for Macerich and DigitalBridge

-0.04

Correlation Coefficient

Macerich  DigitalBridge

Good diversification

The 3 months correlation between Macerich and DigitalBridge is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Macerich Company and DigitalBridge Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigitalBridge Group and Macerich 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 Macerich Company are associated (or correlated) with DigitalBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigitalBridge Group has no effect on the direction of Macerich i.e., Macerich and DigitalBridge go up and down completely randomly.

Pair Corralation between Macerich and DigitalBridge

Considering the 90-day investment horizon Macerich Company is expected to generate 2.33 times more return on investment than DigitalBridge. However, Macerich is 2.33 times more volatile than DigitalBridge Group. It trades about 0.02 of its potential returns per unit of risk. DigitalBridge Group is currently generating about -0.01 per unit of risk. If you would invest  1,697  in Macerich Company on August 16, 2025 and sell it today you would earn a total of  30.00  from holding Macerich Company or generate 1.77% return on investment over 90 days.

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

Macerich Company  vs.  DigitalBridge Group

Macerich

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Macerich Company are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Macerich is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

DigitalBridge Group

Risk-Adjusted Performance

Weakest

Over the last 90 days DigitalBridge Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, DigitalBridge is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Macerich and DigitalBridge

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

The idea behind Macerich Company and DigitalBridge Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.