Correlation Between Primaris Retail and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both Primaris Retail 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 Primaris Retail and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Primaris Retail RE and Brookfield Infrastructure Partners, you can compare the effects of market volatilities on Primaris Retail 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 Primaris Retail with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primaris Retail and Brookfield Infrastructure.
Diversification Opportunities for Primaris Retail and Brookfield Infrastructure
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Primaris and Brookfield is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Primaris Retail RE and Brookfield Infrastructure Part in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and Primaris Retail 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 Primaris Retail RE 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 Primaris Retail i.e., Primaris Retail and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between Primaris Retail and Brookfield Infrastructure
Assuming the 90 days trading horizon Primaris Retail RE is expected to generate 1.7 times more return on investment than Brookfield Infrastructure. However, Primaris Retail is 1.7 times more volatile than Brookfield Infrastructure Partners. It trades about 0.09 of its potential returns per unit of risk. Brookfield Infrastructure Partners is currently generating about 0.08 per unit of risk. If you would invest 1,318 in Primaris Retail RE on September 20, 2024 and sell it today you would earn a total of 237.00 from holding Primaris Retail RE or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Primaris Retail RE vs. Brookfield Infrastructure Part
Performance |
| Timeline |
| Primaris Retail RE |
| Brookfield Infrastructure |
Primaris Retail and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primaris Retail and Brookfield Infrastructure
The main advantage of trading using opposite Primaris Retail and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primaris Retail 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.| Primaris Retail vs. HR Real Estate | Primaris Retail vs. Dream Office Real | Primaris Retail vs. Artis Real Estate | Primaris Retail vs. Boardwalk Real Estate |
| Brookfield Infrastructure vs. Microsoft Corp CDR | Brookfield Infrastructure vs. Apple Inc CDR | Brookfield Infrastructure vs. Alphabet Inc CDR | Brookfield Infrastructure vs. Amazon CDR |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |