Correlation Between Brookfield Office and Helios Fairfax
Can any of the company-specific risk be diversified away by investing in both Brookfield Office and Helios Fairfax 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 Helios Fairfax 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 Helios Fairfax Partners, you can compare the effects of market volatilities on Brookfield Office and Helios Fairfax 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 Helios Fairfax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Office and Helios Fairfax.
Diversification Opportunities for Brookfield Office and Helios Fairfax
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brookfield and Helios is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Office Properties and Helios Fairfax Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Fairfax Partners 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 Helios Fairfax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Fairfax Partners has no effect on the direction of Brookfield Office i.e., Brookfield Office and Helios Fairfax go up and down completely randomly.
Pair Corralation between Brookfield Office and Helios Fairfax
Assuming the 90 days trading horizon Brookfield Office Properties is expected to generate 0.26 times more return on investment than Helios Fairfax. However, Brookfield Office Properties is 3.89 times less risky than Helios Fairfax. It trades about 0.06 of its potential returns per unit of risk. Helios Fairfax Partners is currently generating about -0.1 per unit of risk. If you would invest 1,718 in Brookfield Office Properties on October 10, 2024 and sell it today you would earn a total of 32.00 from holding Brookfield Office Properties or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Office Properties vs. Helios Fairfax Partners
Performance |
| Timeline |
| Brookfield Office |
| Helios Fairfax Partners |
Brookfield Office and Helios Fairfax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Office and Helios Fairfax
The main advantage of trading using opposite Brookfield Office and Helios Fairfax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Office position performs unexpectedly, Helios Fairfax 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 Helios Fairfax will offset losses from the drop in Helios Fairfax's long position.| Brookfield Office vs. Ocumetics Technology Corp | Brookfield Office vs. Magna Mining | Brookfield Office vs. Constellation Software | Brookfield Office vs. Lion One Metals |
| Helios Fairfax vs. Lycos Energy | Helios Fairfax vs. Scandium Canada | Helios Fairfax vs. Voice Mobility International | Helios Fairfax vs. Martina Minerals 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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