Correlation Between Brookfield Renewable and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Brookfield Renewable and Duke Energy 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 Renewable and Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Renewable Partners and Duke Energy, you can compare the effects of market volatilities on Brookfield Renewable and Duke Energy 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 Renewable with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Renewable and Duke Energy.
Diversification Opportunities for Brookfield Renewable and Duke Energy
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Brookfield and Duke is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Renewable Partners and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy and Brookfield Renewable 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 Renewable Partners are associated (or correlated) with Duke Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duke Energy has no effect on the direction of Brookfield Renewable i.e., Brookfield Renewable and Duke Energy go up and down completely randomly.
Pair Corralation between Brookfield Renewable and Duke Energy
Assuming the 90 days trading horizon Brookfield Renewable Partners is expected to under-perform the Duke Energy. In addition to that, Brookfield Renewable is 4.97 times more volatile than Duke Energy. It trades about -0.17 of its total potential returns per unit of risk. Duke Energy is currently generating about 0.07 per unit of volatility. If you would invest 2,479 in Duke Energy on August 24, 2024 and sell it today you would earn a total of 14.00 from holding Duke Energy or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Renewable Partners vs. Duke Energy
Performance |
| Timeline |
| Brookfield Renewable |
| Duke Energy |
Brookfield Renewable and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Renewable and Duke Energy
The main advantage of trading using opposite Brookfield Renewable and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Renewable position performs unexpectedly, Duke Energy 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 Duke Energy will offset losses from the drop in Duke Energy's long position.| Brookfield Renewable vs. Brookfield Infrastructure Partners | Brookfield Renewable vs. Brookfield Infrastructure Partners | Brookfield Renewable vs. Entergy Texas | Brookfield Renewable vs. Duke Energy |
| Duke Energy vs. Centrais Eltricas Brasileiras | Duke Energy vs. Nextera Energy | Duke Energy vs. Consumers Energy | Duke Energy vs. CMS Energy |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |