Correlation Between Power REIT and Brookfield Property
Can any of the company-specific risk be diversified away by investing in both Power REIT 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 Power REIT and Brookfield Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power REIT and Brookfield Property Partners, you can compare the effects of market volatilities on Power REIT 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 Power REIT with a short position of Brookfield Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power REIT and Brookfield Property.
Diversification Opportunities for Power REIT and Brookfield Property
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Power and Brookfield is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Power REIT and Brookfield Property Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Property and Power REIT 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 Power REIT 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 Power REIT i.e., Power REIT and Brookfield Property go up and down completely randomly.
Pair Corralation between Power REIT and Brookfield Property
Allowing for the 90-day total investment horizon Power REIT is expected to generate 7.32 times more return on investment than Brookfield Property. However, Power REIT is 7.32 times more volatile than Brookfield Property Partners. It trades about 0.06 of its potential returns per unit of risk. Brookfield Property Partners is currently generating about 0.12 per unit of risk. If you would invest 75.00 in Power REIT on August 25, 2024 and sell it today you would earn a total of 32.00 from holding Power REIT or generate 42.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Power REIT vs. Brookfield Property Partners
Performance |
| Timeline |
| Power REIT |
| Brookfield Property |
Power REIT and Brookfield Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power REIT and Brookfield Property
The main advantage of trading using opposite Power REIT and Brookfield Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power REIT 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.| Power REIT vs. Newlake Capital Partners | Power REIT vs. Outfront Media | Power REIT vs. Uniti Group | Power REIT vs. Farmland Partners |
| Brookfield Property vs. Frp Holdings Ord | Brookfield Property vs. Transcontinental Realty Investors | Brookfield Property vs. J W Mays | Brookfield Property vs. Anywhere 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets |