Correlation Between Brookfield Corp and Oppenheimer Holdings
Can any of the company-specific risk be diversified away by investing in both Brookfield Corp and Oppenheimer Holdings 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 Oppenheimer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Corp and Oppenheimer Holdings, you can compare the effects of market volatilities on Brookfield Corp and Oppenheimer Holdings 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 Oppenheimer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Corp and Oppenheimer Holdings.
Diversification Opportunities for Brookfield Corp and Oppenheimer Holdings
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brookfield and Oppenheimer is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Corp and Oppenheimer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Holdings 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 Oppenheimer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Holdings has no effect on the direction of Brookfield Corp i.e., Brookfield Corp and Oppenheimer Holdings go up and down completely randomly.
Pair Corralation between Brookfield Corp and Oppenheimer Holdings
Allowing for the 90-day total investment horizon Brookfield Corp is expected to generate 1.0 times more return on investment than Oppenheimer Holdings. However, Brookfield Corp is 1.0 times more volatile than Oppenheimer Holdings. It trades about 0.28 of its potential returns per unit of risk. Oppenheimer Holdings is currently generating about 0.13 per unit of risk. If you would invest 5,468 in Brookfield Corp on August 29, 2024 and sell it today you would earn a total of 540.00 from holding Brookfield Corp or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Corp vs. Oppenheimer Holdings
Performance |
| Timeline |
| Brookfield Corp |
| Oppenheimer Holdings |
Brookfield Corp and Oppenheimer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Corp and Oppenheimer Holdings
The main advantage of trading using opposite Brookfield Corp and Oppenheimer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Corp position performs unexpectedly, Oppenheimer Holdings 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 Oppenheimer Holdings will offset losses from the drop in Oppenheimer Holdings' 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 |
| Oppenheimer Holdings vs. PJT Partners | Oppenheimer Holdings vs. Houlihan Lokey | Oppenheimer Holdings vs. Stifel Financial | Oppenheimer Holdings vs. Evercore Partners |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |