Correlation Between BROOKFIELD REINSURANCE and Mako Mining
Can any of the company-specific risk be diversified away by investing in both BROOKFIELD REINSURANCE and Mako Mining 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 REINSURANCE and Mako Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROOKFIELD REINSURANCE LTD and Mako Mining Corp, you can compare the effects of market volatilities on BROOKFIELD REINSURANCE and Mako Mining 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 REINSURANCE with a short position of Mako Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROOKFIELD REINSURANCE and Mako Mining.
Diversification Opportunities for BROOKFIELD REINSURANCE and Mako Mining
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BROOKFIELD and Mako is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding BROOKFIELD REINSURANCE LTD and Mako Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mako Mining Corp and BROOKFIELD REINSURANCE 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 REINSURANCE LTD are associated (or correlated) with Mako Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mako Mining Corp has no effect on the direction of BROOKFIELD REINSURANCE i.e., BROOKFIELD REINSURANCE and Mako Mining go up and down completely randomly.
Pair Corralation between BROOKFIELD REINSURANCE and Mako Mining
Assuming the 90 days trading horizon BROOKFIELD REINSURANCE LTD is expected to generate 0.74 times more return on investment than Mako Mining. However, BROOKFIELD REINSURANCE LTD is 1.36 times less risky than Mako Mining. It trades about 0.79 of its potential returns per unit of risk. Mako Mining Corp is currently generating about -0.12 per unit of risk. If you would invest 7,498 in BROOKFIELD REINSURANCE LTD on September 4, 2024 and sell it today you would earn a total of 475.00 from holding BROOKFIELD REINSURANCE LTD or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
BROOKFIELD REINSURANCE LTD vs. Mako Mining Corp
Performance |
| Timeline |
| BROOKFIELD REINSURANCE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Mako Mining Corp |
BROOKFIELD REINSURANCE and Mako Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROOKFIELD REINSURANCE and Mako Mining
The main advantage of trading using opposite BROOKFIELD REINSURANCE and Mako Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROOKFIELD REINSURANCE position performs unexpectedly, Mako Mining 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 Mako Mining will offset losses from the drop in Mako Mining's long position.| BROOKFIELD REINSURANCE vs. Mako Mining Corp | BROOKFIELD REINSURANCE vs. American Hotel Income | BROOKFIELD REINSURANCE vs. Bausch Health Companies | BROOKFIELD REINSURANCE vs. Rocky Mountain Liquor |
| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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