Correlation Between Brookfield Infrastructure and Boat Rocker
Can any of the company-specific risk be diversified away by investing in both Brookfield Infrastructure and Boat Rocker 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 Infrastructure and Boat Rocker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Infrastructure Partners and Boat Rocker Media, you can compare the effects of market volatilities on Brookfield Infrastructure and Boat Rocker 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 Infrastructure with a short position of Boat Rocker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Infrastructure and Boat Rocker.
Diversification Opportunities for Brookfield Infrastructure and Boat Rocker
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brookfield and Boat is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Infrastructure Part and Boat Rocker Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boat Rocker Media and Brookfield Infrastructure 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 Infrastructure Partners are associated (or correlated) with Boat Rocker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boat Rocker Media has no effect on the direction of Brookfield Infrastructure i.e., Brookfield Infrastructure and Boat Rocker go up and down completely randomly.
Pair Corralation between Brookfield Infrastructure and Boat Rocker
Assuming the 90 days trading horizon Brookfield Infrastructure Partners is expected to generate 0.14 times more return on investment than Boat Rocker. However, Brookfield Infrastructure Partners is 6.98 times less risky than Boat Rocker. It trades about 0.05 of its potential returns per unit of risk. Boat Rocker Media is currently generating about -0.01 per unit of risk. If you would invest 2,404 in Brookfield Infrastructure Partners on September 3, 2024 and sell it today you would earn a total of 96.00 from holding Brookfield Infrastructure Partners or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Infrastructure Part vs. Boat Rocker Media
Performance |
| Timeline |
| Brookfield Infrastructure |
| Boat Rocker Media |
Brookfield Infrastructure and Boat Rocker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Infrastructure and Boat Rocker
The main advantage of trading using opposite Brookfield Infrastructure and Boat Rocker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Infrastructure position performs unexpectedly, Boat Rocker 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 Boat Rocker will offset losses from the drop in Boat Rocker's long position.| Brookfield Infrastructure vs. Endeavour Silver Corp | Brookfield Infrastructure vs. Capstone Mining Corp | Brookfield Infrastructure vs. Arizona Gold Silver | Brookfield Infrastructure vs. Dream Office Real |
| Boat Rocker vs. Thunderbird Entertainment Group | Boat Rocker vs. VerticalScope Holdings | Boat Rocker vs. WildBrain | Boat Rocker vs. Kits Eyecare |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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