Correlation Between Brookfield Office and Atlantic Power
Can any of the company-specific risk be diversified away by investing in both Brookfield Office and Atlantic Power 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 Office and Atlantic Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Office Properties and Atlantic Power, you can compare the effects of market volatilities on Brookfield Office and Atlantic Power 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 Office with a short position of Atlantic Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Office and Atlantic Power.
Diversification Opportunities for Brookfield Office and Atlantic Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brookfield and Atlantic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Office Properties and Atlantic Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Power and Brookfield Office 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 Office Properties are associated (or correlated) with Atlantic Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Power has no effect on the direction of Brookfield Office i.e., Brookfield Office and Atlantic Power go up and down completely randomly.
Pair Corralation between Brookfield Office and Atlantic Power
If you would invest 1,653 in Brookfield Office Properties on September 3, 2024 and sell it today you would earn a total of 77.00 from holding Brookfield Office Properties or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Brookfield Office Properties vs. Atlantic Power
Performance |
| Timeline |
| Brookfield Office |
| Atlantic Power |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brookfield Office and Atlantic Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Office and Atlantic Power
The main advantage of trading using opposite Brookfield Office and Atlantic Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Office position performs unexpectedly, Atlantic Power 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 Atlantic Power will offset losses from the drop in Atlantic Power's long position.| Brookfield Office vs. Apple Inc CDR | Brookfield Office vs. Microsoft Corp CDR | Brookfield Office vs. Amazon CDR | Brookfield Office vs. Alphabet Inc CDR |
| Atlantic Power vs. Gfl Environmental Holdings | Atlantic Power vs. Talon Metals Corp | Atlantic Power vs. Verizon Communications CDR | Atlantic Power vs. Datable Technology Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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