Correlation Between Canuc Resources and Brookfield Office
Can any of the company-specific risk be diversified away by investing in both Canuc Resources 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 Canuc Resources and Brookfield Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canuc Resources Corp and Brookfield Office Properties, you can compare the effects of market volatilities on Canuc Resources 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 Canuc Resources with a short position of Brookfield Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canuc Resources and Brookfield Office.
Diversification Opportunities for Canuc Resources and Brookfield Office
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canuc and Brookfield is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Canuc Resources Corp and Brookfield Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Office and Canuc Resources 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 Canuc Resources Corp 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 Canuc Resources i.e., Canuc Resources and Brookfield Office go up and down completely randomly.
Pair Corralation between Canuc Resources and Brookfield Office
Assuming the 90 days horizon Canuc Resources Corp is expected to generate 4.76 times more return on investment than Brookfield Office. However, Canuc Resources is 4.76 times more volatile than Brookfield Office Properties. It trades about 0.22 of its potential returns per unit of risk. Brookfield Office Properties is currently generating about 0.28 per unit of risk. If you would invest 6.00 in Canuc Resources Corp on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Canuc Resources Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Canuc Resources Corp vs. Brookfield Office Properties
Performance |
| Timeline |
| Canuc Resources Corp |
| Brookfield Office |
Canuc Resources and Brookfield Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canuc Resources and Brookfield Office
The main advantage of trading using opposite Canuc Resources and Brookfield Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canuc Resources 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.| Canuc Resources vs. CNJ Capital Investments | Canuc Resources vs. QC Copper and | Canuc Resources vs. SalesforceCom CDR | Canuc Resources vs. Western Copper and |
| Brookfield Office vs. Apple Inc CDR | Brookfield Office vs. Microsoft Corp CDR | Brookfield Office vs. Amazon CDR | Brookfield Office vs. Alphabet Inc CDR |
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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