Correlation Between Brookfield Office and Ocumetics Technology
Can any of the company-specific risk be diversified away by investing in both Brookfield Office and Ocumetics Technology 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 Ocumetics Technology 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 Ocumetics Technology Corp, you can compare the effects of market volatilities on Brookfield Office and Ocumetics Technology 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 Ocumetics Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Office and Ocumetics Technology.
Diversification Opportunities for Brookfield Office and Ocumetics Technology
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brookfield and Ocumetics is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Office Properties and Ocumetics Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocumetics Technology 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 Ocumetics Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocumetics Technology Corp has no effect on the direction of Brookfield Office i.e., Brookfield Office and Ocumetics Technology go up and down completely randomly.
Pair Corralation between Brookfield Office and Ocumetics Technology
Assuming the 90 days trading horizon Brookfield Office Properties is expected to generate 0.4 times more return on investment than Ocumetics Technology. However, Brookfield Office Properties is 2.5 times less risky than Ocumetics Technology. It trades about 0.06 of its potential returns per unit of risk. Ocumetics Technology Corp is currently generating about 0.02 per unit of risk. If you would invest 1,233 in Brookfield Office Properties on September 2, 2024 and sell it today you would earn a total of 497.00 from holding Brookfield Office Properties or generate 40.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Office Properties vs. Ocumetics Technology Corp
Performance |
| Timeline |
| Brookfield Office |
| Ocumetics Technology Corp |
Brookfield Office and Ocumetics Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Office and Ocumetics Technology
The main advantage of trading using opposite Brookfield Office and Ocumetics Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Office position performs unexpectedly, Ocumetics Technology 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 Ocumetics Technology will offset losses from the drop in Ocumetics Technology's long position.| Brookfield Office vs. Fairfax Financial Holdings | Brookfield Office vs. iShares Canadian HYBrid | Brookfield Office vs. Brompton European Dividend | Brookfield Office vs. Solar Alliance Energy |
| Ocumetics Technology vs. Orca Energy Group | Ocumetics Technology vs. Rogers Communications | Ocumetics Technology vs. Aclara Resources | Ocumetics Technology vs. Greenfire Resources |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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