Correlation Between Canaf Investments and Brookfield Office
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Brookfield Office 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 Canaf Investments and Brookfield Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Brookfield Office Properties, you can compare the effects of market volatilities on Canaf Investments and Brookfield Office 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 Canaf Investments with a short position of Brookfield Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Brookfield Office.
Diversification Opportunities for Canaf Investments and Brookfield Office
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Canaf and Brookfield is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Brookfield Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Office and Canaf 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 Canaf Investments are associated (or correlated) with Brookfield Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Office has no effect on the direction of Canaf Investments i.e., Canaf Investments and Brookfield Office go up and down completely randomly.
Pair Corralation between Canaf Investments and Brookfield Office
Assuming the 90 days horizon Canaf Investments is expected to generate 1.44 times less return on investment than Brookfield Office. In addition to that, Canaf Investments is 3.87 times more volatile than Brookfield Office Properties. It trades about 0.06 of its total potential returns per unit of risk. Brookfield Office Properties is currently generating about 0.35 per unit of volatility. If you would invest 1,726 in Brookfield Office Properties on September 12, 2024 and sell it today you would earn a total of 435.00 from holding Brookfield Office Properties or generate 25.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Canaf Investments vs. Brookfield Office Properties
Performance |
| Timeline |
| Canaf Investments |
| Brookfield Office |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
Canaf Investments and Brookfield Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Brookfield Office
The main advantage of trading using opposite Canaf Investments and Brookfield Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Brookfield Office 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 Brookfield Office will offset losses from the drop in Brookfield Office's long position.| Canaf Investments vs. First Majestic Silver | Canaf Investments vs. Ivanhoe Energy | Canaf Investments vs. Orezone Gold Corp | Canaf Investments vs. Faraday Copper Corp |
| Brookfield Office vs. Canlan Ice Sports | Brookfield Office vs. Verizon Communications CDR | Brookfield Office vs. Forsys Metals Corp | Brookfield Office vs. MTY Food Group |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |