Correlation Between Capstone Mining and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both Capstone Mining 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 Capstone Mining and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capstone Mining Corp and Brookfield Infrastructure Partners, you can compare the effects of market volatilities on Capstone Mining 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 Capstone Mining with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Mining and Brookfield Infrastructure.
Diversification Opportunities for Capstone Mining and Brookfield Infrastructure
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Capstone and Brookfield is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Mining Corp and Brookfield Infrastructure Part in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and Capstone Mining 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 Capstone Mining Corp 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 Capstone Mining i.e., Capstone Mining and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between Capstone Mining and Brookfield Infrastructure
Assuming the 90 days horizon Capstone Mining Corp is expected to generate 3.51 times more return on investment than Brookfield Infrastructure. However, Capstone Mining is 3.51 times more volatile than Brookfield Infrastructure Partners. It trades about 0.06 of its potential returns per unit of risk. Brookfield Infrastructure Partners is currently generating about 0.06 per unit of risk. If you would invest 462.00 in Capstone Mining Corp on September 3, 2024 and sell it today you would earn a total of 506.00 from holding Capstone Mining Corp or generate 109.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capstone Mining Corp vs. Brookfield Infrastructure Part
Performance |
| Timeline |
| Capstone Mining Corp |
| Brookfield Infrastructure |
Capstone Mining and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Mining and Brookfield Infrastructure
The main advantage of trading using opposite Capstone Mining and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Mining 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.| Capstone Mining vs. Slate Grocery REIT | Capstone Mining vs. iSign Media Solutions | Capstone Mining vs. Arbor Metals Corp | Capstone Mining vs. Talon Metals Corp |
| Brookfield Infrastructure vs. Endeavour Silver Corp | Brookfield Infrastructure vs. Capstone Mining Corp | Brookfield Infrastructure vs. Arizona Gold Silver | Brookfield Infrastructure vs. Dream Office Real |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |