Correlation Between Urstadt Biddle and Brixmor Property

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

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

Diversification Opportunities for Urstadt Biddle and Brixmor Property

0.57

Correlation Coefficient

Urstadt Biddle  Brixmor Property

Very weak diversification

The 3 months correlation between Urstadt and Brixmor is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Urstadt Biddle and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Urstadt Biddle 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 Urstadt Biddle 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 Urstadt Biddle i.e., Urstadt Biddle and Brixmor Property go up and down completely randomly.

Pair Corralation between Urstadt Biddle and Brixmor Property

Considering the 90-day investment horizon Urstadt Biddle is expected to generate 2.04 times more return on investment than Brixmor Property. However, Urstadt Biddle is 2.04 times more volatile than Brixmor Property. It trades about 0.07 of its potential returns per unit of risk. Brixmor Property is currently generating about 0.05 per unit of risk. If you would invest  1,799  in Urstadt Biddle on September 28, 2024 and sell it today you would earn a total of  451.00  from holding Urstadt Biddle or generate 25.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	27.47%
Values	Daily Returns

Urstadt Biddle  vs.  Brixmor Property

Urstadt Biddle

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Urstadt Biddle has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Urstadt Biddle is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Brixmor Property

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Brixmor Property are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Brixmor Property is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Urstadt Biddle and Brixmor Property

The main advantage of trading using opposite Urstadt Biddle and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urstadt Biddle 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 Urstadt Biddle 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.