Correlation Between Greenlight Capital and Brookfield Reinsurance
Can any of the company-specific risk be diversified away by investing in both Greenlight Capital and Brookfield Reinsurance 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 Greenlight Capital and Brookfield Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlight Capital Re and Brookfield Reinsurance, you can compare the effects of market volatilities on Greenlight Capital and Brookfield Reinsurance 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 Greenlight Capital with a short position of Brookfield Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlight Capital and Brookfield Reinsurance.
Diversification Opportunities for Greenlight Capital and Brookfield Reinsurance
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenlight and Brookfield is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Greenlight Capital Re and Brookfield Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Reinsurance and Greenlight 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 Greenlight Capital Re are associated (or correlated) with Brookfield Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Reinsurance has no effect on the direction of Greenlight Capital i.e., Greenlight Capital and Brookfield Reinsurance go up and down completely randomly.
Pair Corralation between Greenlight Capital and Brookfield Reinsurance
If you would invest 1,339 in Greenlight Capital Re on August 27, 2024 and sell it today you would earn a total of 169.00 from holding Greenlight Capital Re or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Greenlight Capital Re vs. Brookfield Reinsurance
Performance |
| Timeline |
| Greenlight Capital |
| Brookfield Reinsurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greenlight Capital and Brookfield Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlight Capital and Brookfield Reinsurance
The main advantage of trading using opposite Greenlight Capital and Brookfield Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlight Capital position performs unexpectedly, Brookfield Reinsurance 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 Reinsurance will offset losses from the drop in Brookfield Reinsurance's long position.| Greenlight Capital vs. Reinsurance Group of | Greenlight Capital vs. Siriuspoint | Greenlight Capital vs. SCOR PK | Greenlight Capital vs. SiriusPoint |
| Brookfield Reinsurance vs. Maiden Holdings | Brookfield Reinsurance vs. Renaissancere Holdings | Brookfield Reinsurance vs. Greenlight Capital Re | Brookfield Reinsurance vs. Reinsurance Group of |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |