Correlation Between CNJ Capital and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and Brookfield Infrastructure 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 CNJ Capital and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and Brookfield Infrastructure Partners, you can compare the effects of market volatilities on CNJ Capital and Brookfield Infrastructure 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 CNJ Capital with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Brookfield Infrastructure.
Diversification Opportunities for CNJ Capital and Brookfield Infrastructure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Brookfield is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and Brookfield Infrastructure Part in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and CNJ Capital 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 CNJ Capital Investments are associated (or correlated) with Brookfield Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Infrastructure has no effect on the direction of CNJ Capital i.e., CNJ Capital and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between CNJ Capital and Brookfield Infrastructure
If you would invest 2,500 in Brookfield Infrastructure Partners on October 15, 2024 and sell it today you would earn a total of 5.00 from holding Brookfield Infrastructure Partners or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNJ Capital Investments vs. Brookfield Infrastructure Part
Performance |
| Timeline |
| CNJ Capital Investments |
| Brookfield Infrastructure |
CNJ Capital and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Brookfield Infrastructure
The main advantage of trading using opposite CNJ Capital and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, Brookfield Infrastructure 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 Infrastructure will offset losses from the drop in Brookfield Infrastructure's long position.| CNJ Capital vs. A W FOOD | CNJ Capital vs. Aya Gold Silver | CNJ Capital vs. MAG Silver Corp | CNJ Capital vs. Major Drilling 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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