Correlation Between Brookfield Investments and Goldbank Mining
Can any of the company-specific risk be diversified away by investing in both Brookfield Investments and Goldbank Mining 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 Investments and Goldbank Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Investments and Goldbank Mining Corp, you can compare the effects of market volatilities on Brookfield Investments and Goldbank Mining 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 Investments with a short position of Goldbank Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Investments and Goldbank Mining.
Diversification Opportunities for Brookfield Investments and Goldbank Mining
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brookfield and Goldbank is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Investments and Goldbank Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldbank Mining Corp and Brookfield Investments 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 Investments are associated (or correlated) with Goldbank Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldbank Mining Corp has no effect on the direction of Brookfield Investments i.e., Brookfield Investments and Goldbank Mining go up and down completely randomly.
Pair Corralation between Brookfield Investments and Goldbank Mining
Assuming the 90 days trading horizon Brookfield Investments is expected to generate 0.09 times more return on investment than Goldbank Mining. However, Brookfield Investments is 11.46 times less risky than Goldbank Mining. It trades about 0.21 of its potential returns per unit of risk. Goldbank Mining Corp is currently generating about -0.24 per unit of risk. If you would invest 2,513 in Brookfield Investments on October 16, 2024 and sell it today you would earn a total of 37.00 from holding Brookfield Investments or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.5% |
| Values | Daily Returns |
Brookfield Investments vs. Goldbank Mining Corp
Performance |
| Timeline |
| Brookfield Investments |
| Goldbank Mining Corp |
Brookfield Investments and Goldbank Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Investments and Goldbank Mining
The main advantage of trading using opposite Brookfield Investments and Goldbank Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Investments position performs unexpectedly, Goldbank Mining 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 Goldbank Mining will offset losses from the drop in Goldbank Mining's long position.| Brookfield Investments vs. UnitedHealth Group CDR | Brookfield Investments vs. Medical Facilities | Brookfield Investments vs. Pembina Pipeline Corp | Brookfield Investments vs. Leveljump Healthcare Corp |
| Goldbank Mining vs. Brookfield Investments | Goldbank Mining vs. Talon Metals Corp | Goldbank Mining vs. Partners Value Investments | Goldbank Mining vs. 2028 Investment Grade |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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