Correlation Between Canlan Ice and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Brookfield Infrastructure Partners, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Brookfield Infrastructure.
Diversification Opportunities for Canlan Ice and Brookfield Infrastructure
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Canlan and Brookfield is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Brookfield Infrastructure Part in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between Canlan Ice and Brookfield Infrastructure
Assuming the 90 days trading horizon Canlan Ice is expected to generate 2.06 times less return on investment than Brookfield Infrastructure. In addition to that, Canlan Ice is 1.7 times more volatile than Brookfield Infrastructure Partners. It trades about 0.02 of its total potential returns per unit of risk. Brookfield Infrastructure Partners is currently generating about 0.07 per unit of volatility. If you would invest 1,663 in Brookfield Infrastructure Partners on September 14, 2024 and sell it today you would earn a total of 702.00 from holding Brookfield Infrastructure Partners or generate 42.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Brookfield Infrastructure Part
Performance |
| Timeline |
| Canlan Ice Sports |
| Brookfield Infrastructure |
Canlan Ice and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Brookfield Infrastructure
The main advantage of trading using opposite Canlan Ice and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. BMTC Group | Canlan Ice vs. Caldwell Partners International | Canlan Ice vs. TWC Enterprises | Canlan Ice vs. Madison Pacific Properties |
| Brookfield Infrastructure vs. Canlan Ice Sports | Brookfield Infrastructure vs. Forsys Metals Corp | Brookfield Infrastructure vs. Metalero Mining Corp | Brookfield Infrastructure vs. Ramp Metals |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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