Correlation Between Brookfield Corp and Dynex Capital
Can any of the company-specific risk be diversified away by investing in both Brookfield Corp and Dynex Capital 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 Corp and Dynex Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Corp and Dynex Capital, you can compare the effects of market volatilities on Brookfield Corp and Dynex Capital 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 Corp with a short position of Dynex Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Corp and Dynex Capital.
Diversification Opportunities for Brookfield Corp and Dynex Capital
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Brookfield and Dynex is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Corp and Dynex Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynex Capital and Brookfield Corp 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 Corp are associated (or correlated) with Dynex Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynex Capital has no effect on the direction of Brookfield Corp i.e., Brookfield Corp and Dynex Capital go up and down completely randomly.
Pair Corralation between Brookfield Corp and Dynex Capital
Allowing for the 90-day total investment horizon Brookfield Corp is expected to generate 2.1 times more return on investment than Dynex Capital. However, Brookfield Corp is 2.1 times more volatile than Dynex Capital. It trades about 0.02 of its potential returns per unit of risk. Dynex Capital is currently generating about -0.39 per unit of risk. If you would invest 4,855 in Brookfield Corp on January 12, 2025 and sell it today you would earn a total of 4.00 from holding Brookfield Corp or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Corp vs. Dynex Capital
Performance |
| Timeline |
| Brookfield Corp |
| Dynex Capital |
Brookfield Corp and Dynex Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Corp and Dynex Capital
The main advantage of trading using opposite Brookfield Corp and Dynex Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Corp position performs unexpectedly, Dynex Capital 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 Dynex Capital will offset losses from the drop in Dynex Capital's long position.| Brookfield Corp vs. KKR Co LP | Brookfield Corp vs. Blackstone Group | Brookfield Corp vs. T Rowe Price | Brookfield Corp vs. Apollo Global Management |
| Dynex Capital vs. Ellington Residential Mortgage | Dynex Capital vs. Ares Commercial Real | Dynex Capital vs. Cherry Hill Mortgage | Dynex Capital vs. Ready Capital Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |