Correlation Between Brookfield Wealth and Greenlight Capital
Can any of the company-specific risk be diversified away by investing in both Brookfield Wealth and Greenlight 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 Wealth and Greenlight Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Wealth Solutions and Greenlight Capital Re, you can compare the effects of market volatilities on Brookfield Wealth and Greenlight 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 Wealth with a short position of Greenlight Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Wealth and Greenlight Capital.
Diversification Opportunities for Brookfield Wealth and Greenlight Capital
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brookfield and Greenlight is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Wealth Solutions and Greenlight Capital Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlight Capital and Brookfield Wealth 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 Wealth Solutions are associated (or correlated) with Greenlight Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlight Capital has no effect on the direction of Brookfield Wealth i.e., Brookfield Wealth and Greenlight Capital go up and down completely randomly.
Pair Corralation between Brookfield Wealth and Greenlight Capital
Considering the 90-day investment horizon Brookfield Wealth Solutions is expected to generate 0.65 times more return on investment than Greenlight Capital. However, Brookfield Wealth Solutions is 1.53 times less risky than Greenlight Capital. It trades about 0.42 of its potential returns per unit of risk. Greenlight Capital Re is currently generating about 0.21 per unit of risk. If you would invest 5,345 in Brookfield Wealth Solutions on August 30, 2024 and sell it today you would earn a total of 814.00 from holding Brookfield Wealth Solutions or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Wealth Solutions vs. Greenlight Capital Re
Performance |
| Timeline |
| Brookfield Wealth |
| Greenlight Capital |
Brookfield Wealth and Greenlight Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Wealth and Greenlight Capital
The main advantage of trading using opposite Brookfield Wealth and Greenlight Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Wealth position performs unexpectedly, Greenlight 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 Greenlight Capital will offset losses from the drop in Greenlight Capital's long position.| Brookfield Wealth vs. Usio Inc | Brookfield Wealth vs. Valneva SE ADR | Brookfield Wealth vs. Lipocine | Brookfield Wealth vs. Acm Research |
| Greenlight Capital vs. Reinsurance Group of | Greenlight Capital vs. Siriuspoint | Greenlight Capital vs. SCOR PK | Greenlight Capital vs. SiriusPoint |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |