Correlation Between Brookfield Corp and Thunder Bridge
Can any of the company-specific risk be diversified away by investing in both Brookfield Corp and Thunder Bridge 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 Thunder Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Corp and Thunder Bridge Capital, you can compare the effects of market volatilities on Brookfield Corp and Thunder Bridge 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 Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Corp and Thunder Bridge.
Diversification Opportunities for Brookfield Corp and Thunder Bridge
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brookfield and Thunder is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Corp and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge 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 Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of Brookfield Corp i.e., Brookfield Corp and Thunder Bridge go up and down completely randomly.
Pair Corralation between Brookfield Corp and Thunder Bridge
Allowing for the 90-day total investment horizon Brookfield Corp is expected to generate 2.94 times more return on investment than Thunder Bridge. However, Brookfield Corp is 2.94 times more volatile than Thunder Bridge Capital. It trades about 0.17 of its potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.04 per unit of risk. If you would invest 4,353 in Brookfield Corp on September 1, 2024 and sell it today you would earn a total of 1,786 from holding Brookfield Corp or generate 41.03% 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. Thunder Bridge Capital
Performance |
| Timeline |
| Brookfield Corp |
| Thunder Bridge Capital |
Brookfield Corp and Thunder Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Corp and Thunder Bridge
The main advantage of trading using opposite Brookfield Corp and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Corp position performs unexpectedly, Thunder Bridge 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 Thunder Bridge will offset losses from the drop in Thunder Bridge'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 |
| Thunder Bridge vs. Four Leaf Acquisition | Thunder Bridge vs. WinVest Acquisition Corp | Thunder Bridge vs. SK Growth Opportunities | Thunder Bridge vs. Pearl Holdings Acquisition |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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