Correlation Between Brookfield Property and Newmark
Can any of the company-specific risk be diversified away by investing in both Brookfield Property and Newmark 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 Property and Newmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Property Partners and Newmark Group, you can compare the effects of market volatilities on Brookfield Property and Newmark 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 Property with a short position of Newmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Property and Newmark.
Diversification Opportunities for Brookfield Property and Newmark
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brookfield and Newmark is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Property Partners and Newmark Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmark Group and Brookfield Property 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 Property Partners are associated (or correlated) with Newmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmark Group has no effect on the direction of Brookfield Property i.e., Brookfield Property and Newmark go up and down completely randomly.
Pair Corralation between Brookfield Property and Newmark
Assuming the 90 days horizon Brookfield Property is expected to generate 1.81 times less return on investment than Newmark. But when comparing it to its historical volatility, Brookfield Property Partners is 1.6 times less risky than Newmark. It trades about 0.09 of its potential returns per unit of risk. Newmark Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,496 in Newmark Group on September 1, 2024 and sell it today you would earn a total of 52.00 from holding Newmark Group or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Property Partners vs. Newmark Group
Performance |
| Timeline |
| Brookfield Property |
| Newmark Group |
Brookfield Property and Newmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Property and Newmark
The main advantage of trading using opposite Brookfield Property and Newmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Property position performs unexpectedly, Newmark 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 Newmark will offset losses from the drop in Newmark's long position.| Brookfield Property vs. Ardelyx | Brookfield Property vs. Sellas Life Sciences | Brookfield Property vs. Highway Holdings Limited | Brookfield Property vs. Avient Corp |
| Newmark vs. Jones Lang LaSalle | Newmark vs. CBRE Group Class | Newmark vs. Colliers International Group | Newmark vs. Marcus Millichap |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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