Correlation Between Brookfield Office and Canuc Resources
Can any of the company-specific risk be diversified away by investing in both Brookfield Office and Canuc Resources 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 Canuc Resources 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 Canuc Resources Corp, you can compare the effects of market volatilities on Brookfield Office and Canuc Resources 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 Canuc Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Office and Canuc Resources.
Diversification Opportunities for Brookfield Office and Canuc Resources
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brookfield and Canuc is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Office Properties and Canuc Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canuc Resources Corp 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 Canuc Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canuc Resources Corp has no effect on the direction of Brookfield Office i.e., Brookfield Office and Canuc Resources go up and down completely randomly.
Pair Corralation between Brookfield Office and Canuc Resources
Assuming the 90 days trading horizon Brookfield Office is expected to generate 2.09 times less return on investment than Canuc Resources. But when comparing it to its historical volatility, Brookfield Office Properties is 8.85 times less risky than Canuc Resources. It trades about 0.1 of its potential returns per unit of risk. Canuc Resources Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Canuc Resources Corp on September 3, 2024 and sell it today you would lose (3.00) from holding Canuc Resources Corp or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Brookfield Office Properties vs. Canuc Resources Corp
Performance |
| Timeline |
| Brookfield Office |
| Canuc Resources Corp |
Brookfield Office and Canuc Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Office and Canuc Resources
The main advantage of trading using opposite Brookfield Office and Canuc Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Office position performs unexpectedly, Canuc Resources 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 Canuc Resources will offset losses from the drop in Canuc Resources' 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 |
| Canuc Resources vs. CNJ Capital Investments | Canuc Resources vs. QC Copper and | Canuc Resources vs. SalesforceCom CDR | Canuc Resources vs. Western Copper and |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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