Correlation Between Brookfield Asset and AMP
Can any of the company-specific risk be diversified away by investing in both Brookfield Asset and AMP 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 Brookfield Asset and AMP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Asset Management and AMP, you can compare the effects of market volatilities on Brookfield Asset and AMP 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 Brookfield Asset with a short position of AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Asset and AMP.
Diversification Opportunities for Brookfield Asset and AMP
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brookfield and AMP is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Asset Management and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP and Brookfield Asset 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 Brookfield Asset Management are associated (or correlated) with AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of Brookfield Asset i.e., Brookfield Asset and AMP go up and down completely randomly.
Pair Corralation between Brookfield Asset and AMP
Assuming the 90 days horizon Brookfield Asset Management is expected to generate 2.61 times more return on investment than AMP. However, Brookfield Asset is 2.61 times more volatile than AMP. It trades about 0.02 of its potential returns per unit of risk. AMP is currently generating about -0.02 per unit of risk. If you would invest 1,063 in Brookfield Asset Management on September 3, 2024 and sell it today you would lose (97.00) from holding Brookfield Asset Management or give up 9.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 52.05% |
| Values | Daily Returns |
Brookfield Asset Management vs. AMP
Performance |
| Timeline |
| Brookfield Asset Man |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AMP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brookfield Asset and AMP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Asset and AMP
The main advantage of trading using opposite Brookfield Asset and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Asset position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.| Brookfield Asset vs. AGF Management Limited | Brookfield Asset vs. Nuveen New York | Brookfield Asset vs. European Equity Closed | Brookfield Asset vs. Nuveen New York |
Check out your portfolio center.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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |