Correlation Between Brookfield DTLA and TPG RE
Can any of the company-specific risk be diversified away by investing in both Brookfield DTLA and TPG RE 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 DTLA and TPG RE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield DTLA and TPG RE Finance, you can compare the effects of market volatilities on Brookfield DTLA and TPG RE 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 DTLA with a short position of TPG RE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield DTLA and TPG RE.
Diversification Opportunities for Brookfield DTLA and TPG RE
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brookfield and TPG is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield DTLA and TPG RE Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPG RE Finance and Brookfield DTLA 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 DTLA are associated (or correlated) with TPG RE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPG RE Finance has no effect on the direction of Brookfield DTLA i.e., Brookfield DTLA and TPG RE go up and down completely randomly.
Pair Corralation between Brookfield DTLA and TPG RE
Assuming the 90 days horizon Brookfield DTLA is expected to under-perform the TPG RE. In addition to that, Brookfield DTLA is 8.06 times more volatile than TPG RE Finance. It trades about -0.08 of its total potential returns per unit of risk. TPG RE Finance is currently generating about 0.05 per unit of volatility. If you would invest 1,336 in TPG RE Finance on August 30, 2024 and sell it today you would earn a total of 588.00 from holding TPG RE Finance or generate 44.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.05% |
| Values | Daily Returns |
Brookfield DTLA vs. TPG RE Finance
Performance |
| Timeline |
| Brookfield DTLA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TPG RE Finance |
Brookfield DTLA and TPG RE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield DTLA and TPG RE
The main advantage of trading using opposite Brookfield DTLA and TPG RE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield DTLA position performs unexpectedly, TPG RE 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 TPG RE will offset losses from the drop in TPG RE's long position.| Brookfield DTLA vs. Viemed Healthcare | Brookfield DTLA vs. SunLink Health Systems | Brookfield DTLA vs. Mediag3 | Brookfield DTLA vs. Village Super Market |
| TPG RE vs. ACRES Commercial Realty | TPG RE vs. Dynex Capital | TPG RE vs. PennyMac Mortgage Investment | TPG RE vs. AG Mortgage Investment |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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