Correlation Between Plaza Retail and Birchtech Corp

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

By analyzing existing cross correlation between Plaza Retail REIT and Birchtech Corp, you can compare the effects of market volatilities on Plaza Retail and Birchtech Corp 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 Plaza Retail with a short position of Birchtech Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Retail and Birchtech Corp.

Diversification Opportunities for Plaza Retail and Birchtech Corp

0.16

Correlation Coefficient

Plaza Retail  Birchtech Corp

Average diversification

The 3 months correlation between Plaza and Birchtech is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT and Birchtech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birchtech Corp and Plaza Retail 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 Plaza Retail REIT are associated (or correlated) with Birchtech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birchtech Corp has no effect on the direction of Plaza Retail i.e., Plaza Retail and Birchtech Corp go up and down completely randomly.

Pair Corralation between Plaza Retail and Birchtech Corp

Assuming the 90 days trading horizon Plaza Retail is expected to generate 1.82 times less return on investment than Birchtech Corp. But when comparing it to its historical volatility, Plaza Retail REIT is 7.99 times less risky than Birchtech Corp. It trades about 0.23 of its potential returns per unit of risk. Birchtech Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  89.00  in Birchtech Corp on July 5, 2025 and sell it today you would earn a total of  8.00  from holding Birchtech Corp or generate 8.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Plaza Retail REIT  vs.  Birchtech Corp

Plaza Retail REIT

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Plaza Retail REIT are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Plaza Retail may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Birchtech Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Birchtech Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Birchtech Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Plaza Retail and Birchtech Corp

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

The idea behind Plaza Retail REIT and Birchtech Corp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.