Correlation Between Brookfield Real and Saba Capital
Can any of the company-specific risk be diversified away by investing in both Brookfield Real and Saba Capital 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 Brookfield Real and Saba Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Real Assets and Saba Capital Income, you can compare the effects of market volatilities on Brookfield Real and Saba Capital 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 Brookfield Real with a short position of Saba Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Real and Saba Capital.
Diversification Opportunities for Brookfield Real and Saba Capital
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brookfield and Saba is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Real Assets and Saba Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Capital Income and Brookfield Real 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 Brookfield Real Assets are associated (or correlated) with Saba Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Capital Income has no effect on the direction of Brookfield Real i.e., Brookfield Real and Saba Capital go up and down completely randomly.
Pair Corralation between Brookfield Real and Saba Capital
Allowing for the 90-day total investment horizon Brookfield Real is expected to generate 1.24 times less return on investment than Saba Capital. But when comparing it to its historical volatility, Brookfield Real Assets is 1.21 times less risky than Saba Capital. It trades about 0.17 of its potential returns per unit of risk. Saba Capital Income is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 673.00 in Saba Capital Income on September 3, 2024 and sell it today you would earn a total of 111.00 from holding Saba Capital Income or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Real Assets vs. Saba Capital Income
Performance |
| Timeline |
| Brookfield Real Assets |
| Saba Capital Income |
Brookfield Real and Saba Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Real and Saba Capital
The main advantage of trading using opposite Brookfield Real and Saba Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Real position performs unexpectedly, Saba Capital 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 Saba Capital will offset losses from the drop in Saba Capital's long position.| Brookfield Real vs. Pimco Dynamic Income | Brookfield Real vs. Pimco Corporate Income | Brookfield Real vs. Cornerstone Strategic Value | Brookfield Real vs. Cornerstone Strategic Return |
| Saba Capital vs. Brookfield Real Assets | Saba Capital vs. Guggenheim Strategic Opportunities | Saba Capital vs. Cornerstone Strategic Return | Saba Capital vs. Cornerstone Strategic Value |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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