Correlation Between One Gas and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both One Gas 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 One Gas and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Gas and Brookfield Infrastructure Corp, you can compare the effects of market volatilities on One Gas 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 One Gas with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Gas and Brookfield Infrastructure.
Diversification Opportunities for One Gas and Brookfield Infrastructure
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between One and Brookfield is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding One Gas and Brookfield Infrastructure Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and One Gas 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 One Gas 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 One Gas i.e., One Gas and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between One Gas and Brookfield Infrastructure
Considering the 90-day investment horizon One Gas is expected to generate 0.81 times more return on investment than Brookfield Infrastructure. However, One Gas is 1.23 times less risky than Brookfield Infrastructure. It trades about 0.18 of its potential returns per unit of risk. Brookfield Infrastructure Corp is currently generating about 0.13 per unit of risk. If you would invest 5,801 in One Gas on August 24, 2024 and sell it today you would earn a total of 1,887 from holding One Gas or generate 32.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
One Gas vs. Brookfield Infrastructure Corp
Performance |
| Timeline |
| One Gas |
| Brookfield Infrastructure |
One Gas and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Gas and Brookfield Infrastructure
The main advantage of trading using opposite One Gas and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Gas 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.| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
| Brookfield Infrastructure vs. NewJersey Resources | Brookfield Infrastructure vs. Atmos Energy | Brookfield Infrastructure vs. UGI Corporation | Brookfield Infrastructure vs. Chesapeake Utilities |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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