Correlation Between Brookfield Reinsurance and Oxbridge
Can any of the company-specific risk be diversified away by investing in both Brookfield Reinsurance and Oxbridge 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 Oxbridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Reinsurance and Oxbridge Re Holdings, you can compare the effects of market volatilities on Brookfield Reinsurance and Oxbridge 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 Oxbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Reinsurance and Oxbridge.
Diversification Opportunities for Brookfield Reinsurance and Oxbridge
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brookfield and Oxbridge is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Reinsurance and Oxbridge Re Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxbridge Re Holdings 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 are associated (or correlated) with Oxbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxbridge Re Holdings has no effect on the direction of Brookfield Reinsurance i.e., Brookfield Reinsurance and Oxbridge go up and down completely randomly.
Pair Corralation between Brookfield Reinsurance and Oxbridge
Given the investment horizon of 90 days Brookfield Reinsurance is expected to generate 28.53 times less return on investment than Oxbridge. But when comparing it to its historical volatility, Brookfield Reinsurance is 1.37 times less risky than Oxbridge. It trades about 0.01 of its potential returns per unit of risk. Oxbridge Re Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 228.00 in Oxbridge Re Holdings on August 31, 2024 and sell it today you would earn a total of 80.00 from holding Oxbridge Re Holdings or generate 35.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 77.78% |
| Values | Daily Returns |
Brookfield Reinsurance vs. Oxbridge Re Holdings
Performance |
| Timeline |
| Brookfield Reinsurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oxbridge Re Holdings |
Brookfield Reinsurance and Oxbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Reinsurance and Oxbridge
The main advantage of trading using opposite Brookfield Reinsurance and Oxbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Reinsurance position performs unexpectedly, Oxbridge 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 Oxbridge will offset losses from the drop in Oxbridge's long position.| Brookfield Reinsurance vs. Maiden Holdings | Brookfield Reinsurance vs. Renaissancere Holdings | Brookfield Reinsurance vs. Greenlight Capital Re | Brookfield Reinsurance vs. Reinsurance Group of |
| Oxbridge vs. Muenchener Rueckver Ges | Oxbridge vs. Greenlight Capital Re | Oxbridge vs. Maiden Holdings | Oxbridge vs. Swiss Re |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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