Correlation Between Kimco Realty and Brixmor Property

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

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

Diversification Opportunities for Kimco Realty and Brixmor Property

-0.66

Correlation Coefficient

Kimco Realty  Brixmor Property

Excellent diversification

The 3 months correlation between Kimco and Brixmor is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Brixmor Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property and Kimco Realty 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 Kimco Realty 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 Kimco Realty i.e., Kimco Realty and Brixmor Property go up and down completely randomly.

Pair Corralation between Kimco Realty and Brixmor Property

Assuming the 90 days trading horizon Kimco Realty is expected to under-perform the Brixmor Property. In addition to that, Kimco Realty is 1.06 times more volatile than Brixmor Property. It trades about -0.2 of its total potential returns per unit of risk. Brixmor Property is currently generating about 0.05 per unit of volatility. 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 Against
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Kimco Realty  vs.  Brixmor Property

Kimco Realty

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kimco Realty has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Kimco Realty is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

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.

Pair Trading with Kimco Realty and Brixmor Property

The main advantage of trading using opposite Kimco Realty and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty 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 Kimco Realty 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.