Correlation Between Brookfield Infrastructure and Exro Technologies
Can any of the company-specific risk be diversified away by investing in both Brookfield Infrastructure and Exro Technologies 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 Exro Technologies 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 Exro Technologies, you can compare the effects of market volatilities on Brookfield Infrastructure and Exro Technologies 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 Exro Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Infrastructure and Exro Technologies.
Diversification Opportunities for Brookfield Infrastructure and Exro Technologies
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brookfield and Exro is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Infrastructure Part and Exro Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exro Technologies 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 Exro Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exro Technologies has no effect on the direction of Brookfield Infrastructure i.e., Brookfield Infrastructure and Exro Technologies go up and down completely randomly.
Pair Corralation between Brookfield Infrastructure and Exro Technologies
Assuming the 90 days trading horizon Brookfield Infrastructure Partners is expected to generate 0.11 times more return on investment than Exro Technologies. However, Brookfield Infrastructure Partners is 9.47 times less risky than Exro Technologies. It trades about -0.07 of its potential returns per unit of risk. Exro Technologies is currently generating about -0.22 per unit of risk. If you would invest 2,495 in Brookfield Infrastructure Partners on January 20, 2025 and sell it today you would lose (30.00) from holding Brookfield Infrastructure Partners or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Infrastructure Part vs. Exro Technologies
Performance |
| Timeline |
| Brookfield Infrastructure |
| Exro Technologies |
Brookfield Infrastructure and Exro Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Infrastructure and Exro Technologies
The main advantage of trading using opposite Brookfield Infrastructure and Exro Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Infrastructure position performs unexpectedly, Exro Technologies 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 Exro Technologies will offset losses from the drop in Exro Technologies' long position.The idea behind Brookfield Infrastructure Partners and Exro Technologies 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.
| Exro Technologies vs. Nano One Materials | Exro Technologies vs. Greenlane Renewables | Exro Technologies vs. PyroGenesis Canada | Exro Technologies vs. iShares Canadian HYBrid |
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
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |