Correlation Between Brookfield Asset and Helios Fairfax
Can any of the company-specific risk be diversified away by investing in both Brookfield Asset and Helios Fairfax 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 Helios Fairfax 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 Helios Fairfax Partners, you can compare the effects of market volatilities on Brookfield Asset and Helios Fairfax 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 Helios Fairfax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Asset and Helios Fairfax.
Diversification Opportunities for Brookfield Asset and Helios Fairfax
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brookfield and Helios is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Asset Management and Helios Fairfax Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Fairfax Partners 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 Helios Fairfax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Fairfax Partners has no effect on the direction of Brookfield Asset i.e., Brookfield Asset and Helios Fairfax go up and down completely randomly.
Pair Corralation between Brookfield Asset and Helios Fairfax
Assuming the 90 days horizon Brookfield Asset Management is expected to generate 2.06 times more return on investment than Helios Fairfax. However, Brookfield Asset is 2.06 times more volatile than Helios Fairfax Partners. It trades about 0.02 of its potential returns per unit of risk. Helios Fairfax Partners is currently generating about 0.01 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 | 30.71% |
| Values | Daily Returns |
Brookfield Asset Management vs. Helios Fairfax Partners
Performance |
| Timeline |
| Brookfield Asset Man |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Helios Fairfax Partners |
Brookfield Asset and Helios Fairfax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Asset and Helios Fairfax
The main advantage of trading using opposite Brookfield Asset and Helios Fairfax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Asset position performs unexpectedly, Helios Fairfax 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 Helios Fairfax will offset losses from the drop in Helios Fairfax'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 |
| Helios Fairfax vs. Blackrock International Growth | Helios Fairfax vs. Blackrock Enhanced Equity | Helios Fairfax vs. Eaton Vance Tax | Helios Fairfax vs. Blackrock Resources Commodities |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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