Correlation Between NYSE Composite and Brookfield Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Brookfield Global 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 NYSE Composite and Brookfield Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Brookfield Global Listed, you can compare the effects of market volatilities on NYSE Composite and Brookfield Global 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 NYSE Composite with a short position of Brookfield Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Brookfield Global.
Diversification Opportunities for NYSE Composite and Brookfield Global
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Brookfield is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Brookfield Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Global Listed and NYSE Composite 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 NYSE Composite are associated (or correlated) with Brookfield Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Global Listed has no effect on the direction of NYSE Composite i.e., NYSE Composite and Brookfield Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Brookfield Global
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.94 times more return on investment than Brookfield Global. However, NYSE Composite is 1.07 times less risky than Brookfield Global. It trades about 0.08 of its potential returns per unit of risk. Brookfield Global Listed is currently generating about 0.04 per unit of risk. If you would invest 1,547,479 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 464,866 from holding NYSE Composite or generate 30.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Brookfield Global Listed
Performance |
| Timeline |
NYSE Composite and Brookfield Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Brookfield Global Listed
Pair trading matchups for Brookfield Global
Pair Trading with NYSE Composite and Brookfield Global
The main advantage of trading using opposite NYSE Composite and Brookfield Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Brookfield Global 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 Global will offset losses from the drop in Brookfield Global's long position.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
| Brookfield Global vs. Brookfield Global Listed | Brookfield Global vs. Brookfield Global Listed | Brookfield Global vs. Brookfield Global Listed | Brookfield Global vs. Brookfield Global Listed |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |