Correlation Between Brookfield Infrastructure and Ping An
Can any of the company-specific risk be diversified away by investing in both Brookfield Infrastructure and Ping An 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 Ping An 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 Ping An Insurance, you can compare the effects of market volatilities on Brookfield Infrastructure and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Infrastructure and Ping An.
Diversification Opportunities for Brookfield Infrastructure and Ping An
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brookfield and Ping is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Infrastructure Part and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Brookfield Infrastructure i.e., Brookfield Infrastructure and Ping An go up and down completely randomly.
Pair Corralation between Brookfield Infrastructure and Ping An
Considering the 90-day investment horizon Brookfield Infrastructure Partners is expected to generate 0.32 times more return on investment than Ping An. However, Brookfield Infrastructure Partners is 3.09 times less risky than Ping An. It trades about 0.05 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.05 per unit of risk. If you would invest 3,498 in Brookfield Infrastructure Partners on August 31, 2024 and sell it today you would earn a total of 37.00 from holding Brookfield Infrastructure Partners or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Infrastructure Part vs. Ping An Insurance
Performance |
| Timeline |
| Brookfield Infrastructure |
| Ping An Insurance |
Brookfield Infrastructure and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Infrastructure and Ping An
The main advantage of trading using opposite Brookfield Infrastructure and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Infrastructure position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Brookfield Infrastructure vs. Allete Inc | Brookfield Infrastructure vs. Avista | Brookfield Infrastructure vs. NorthWestern | Brookfield Infrastructure vs. The AES |
| Ping An vs. AIA Group | Ping An vs. Jackson Financial | Ping An vs. Sanlam Ltd PK | Ping An vs. CNO Financial Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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