Correlation Between MAS Gold and Brookfield Office
Can any of the company-specific risk be diversified away by investing in both MAS Gold and Brookfield Office 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 MAS Gold and Brookfield Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAS Gold Corp and Brookfield Office Properties, you can compare the effects of market volatilities on MAS Gold and Brookfield Office 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 MAS Gold with a short position of Brookfield Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Gold and Brookfield Office.
Diversification Opportunities for MAS Gold and Brookfield Office
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAS and Brookfield is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding MAS Gold Corp and Brookfield Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Office and MAS Gold 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 MAS Gold Corp are associated (or correlated) with Brookfield Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Office has no effect on the direction of MAS Gold i.e., MAS Gold and Brookfield Office go up and down completely randomly.
Pair Corralation between MAS Gold and Brookfield Office
Assuming the 90 days horizon MAS Gold Corp is expected to generate 38.41 times more return on investment than Brookfield Office. However, MAS Gold is 38.41 times more volatile than Brookfield Office Properties. It trades about 0.06 of its potential returns per unit of risk. Brookfield Office Properties is currently generating about 0.21 per unit of risk. If you would invest 2.00 in MAS Gold Corp on September 25, 2024 and sell it today you would lose (1.00) from holding MAS Gold Corp or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAS Gold Corp vs. Brookfield Office Properties
Performance |
| Timeline |
| MAS Gold Corp |
| Brookfield Office |
MAS Gold and Brookfield Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAS Gold and Brookfield Office
The main advantage of trading using opposite MAS Gold and Brookfield Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAS Gold position performs unexpectedly, Brookfield Office 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 Office will offset losses from the drop in Brookfield Office's long position.| MAS Gold vs. Wildsky Resources | MAS Gold vs. Q Gold Resources | MAS Gold vs. Plato Gold Corp | MAS Gold vs. Goldbank Mining Corp |
| Brookfield Office vs. Slate Grocery REIT | Brookfield Office vs. Roots Corp | Brookfield Office vs. Aimia Inc | Brookfield Office vs. Morguard Real Estate |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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