Correlation Between Brookfield Property and J W
Can any of the company-specific risk be diversified away by investing in both Brookfield Property and J W 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 J W 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 J W Mays, you can compare the effects of market volatilities on Brookfield Property and J W 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 J W. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Property and J W.
Diversification Opportunities for Brookfield Property and J W
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brookfield and MAYS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Property Partners and J W Mays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J W Mays 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 J W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J W Mays has no effect on the direction of Brookfield Property i.e., Brookfield Property and J W go up and down completely randomly.
Pair Corralation between Brookfield Property and J W
Assuming the 90 days horizon Brookfield Property Partners is expected to generate 1.28 times more return on investment than J W. However, Brookfield Property is 1.28 times more volatile than J W Mays. It trades about 0.08 of its potential returns per unit of risk. J W Mays is currently generating about -0.4 per unit of risk. If you would invest 1,609 in Brookfield Property Partners on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Brookfield Property Partners or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Brookfield Property Partners vs. J W Mays
Performance |
| Timeline |
| Brookfield Property |
| J W Mays |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brookfield Property and J W Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Property and J W
The main advantage of trading using opposite Brookfield Property and J W positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Property position performs unexpectedly, J W 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 J W will offset losses from the drop in J W's long position.| Brookfield Property vs. Brookfield Property Partners | Brookfield Property vs. AGNC Investment Corp | Brookfield Property vs. Brookfield Property Preferred | Brookfield Property vs. AGNC Investment Corp |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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