Correlation Between Brixmor Property and Alexander Baldwin

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

By analyzing existing cross correlation between Brixmor Property and Alexander Baldwin Holdings, you can compare the effects of market volatilities on Brixmor Property and Alexander Baldwin 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 Alexander Baldwin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixmor Property and Alexander Baldwin.

Diversification Opportunities for Brixmor Property and Alexander Baldwin

0.54

Correlation Coefficient

Brixmor Property  Alexander Baldwin

Very weak diversification

The 3 months correlation between Brixmor and Alexander is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Brixmor Property and Alexander Baldwin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexander Baldwin 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 Alexander Baldwin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexander Baldwin has no effect on the direction of Brixmor Property i.e., Brixmor Property and Alexander Baldwin go up and down completely randomly.

Pair Corralation between Brixmor Property and Alexander Baldwin

Considering the 90-day investment horizon Brixmor Property is expected to generate 0.82 times more return on investment than Alexander Baldwin. However, Brixmor Property is 1.22 times less risky than Alexander Baldwin. It trades about 0.05 of its potential returns per unit of risk. Alexander Baldwin Holdings is currently generating about -0.13 per unit of risk. If you would invest  2,897  in Brixmor Property on September 12, 2024 and sell it today you would earn a total of  22.00  from holding Brixmor Property or generate 0.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Brixmor Property  vs.  Alexander Baldwin Holdings

Brixmor Property

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brixmor Property are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Brixmor Property may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Alexander Baldwin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alexander Baldwin Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Alexander Baldwin is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Brixmor Property and Alexander Baldwin

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

The idea behind Brixmor Property and Alexander Baldwin Holdings 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 Global Correlations module to find global opportunities by holding instruments from different markets.