Correlation Between J W and Brookfield Property
Can any of the company-specific risk be diversified away by investing in both J W and Brookfield Property 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 J W and Brookfield Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J W Mays and Brookfield Property Partners, you can compare the effects of market volatilities on J W and Brookfield Property 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 J W with a short position of Brookfield Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of J W and Brookfield Property.
Diversification Opportunities for J W and Brookfield Property
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAYS and Brookfield is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding J W Mays and Brookfield Property Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Property and J W 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 J W Mays are associated (or correlated) with Brookfield Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Property has no effect on the direction of J W i.e., J W and Brookfield Property go up and down completely randomly.
Pair Corralation between J W and Brookfield Property
Given the investment horizon of 90 days J W Mays is expected to under-perform the Brookfield Property. But the stock apears to be less risky and, when comparing its historical volatility, J W Mays is 1.87 times less risky than Brookfield Property. The stock trades about -0.38 of its potential returns per unit of risk. The Brookfield Property Partners is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,715 in Brookfield Property Partners on August 29, 2024 and sell it today you would lose (45.00) from holding Brookfield Property Partners or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
J W Mays vs. Brookfield Property Partners
Performance |
| Timeline |
| J W Mays |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brookfield Property |
J W and Brookfield Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J W and Brookfield Property
The main advantage of trading using opposite J W and Brookfield Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J W position performs unexpectedly, Brookfield Property 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 Property will offset losses from the drop in Brookfield Property's long position.| J W vs. Investcorp Credit Management | J W vs. Medalist Diversified Reit | J W vs. Aquagold International | J W vs. Morningstar Unconstrained Allocation |
| Brookfield Property vs. Frp Holdings Ord | Brookfield Property vs. Transcontinental Realty Investors | Brookfield Property vs. Anywhere Real Estate | Brookfield Property vs. Re Max Holding |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |