Correlation Between Brookfield Real and Nuveen NASDAQ
Can any of the company-specific risk be diversified away by investing in both Brookfield Real and Nuveen NASDAQ 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 Nuveen NASDAQ 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 Nuveen NASDAQ 100, you can compare the effects of market volatilities on Brookfield Real and Nuveen NASDAQ 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 Nuveen NASDAQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Real and Nuveen NASDAQ.
Diversification Opportunities for Brookfield Real and Nuveen NASDAQ
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brookfield and Nuveen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Real Assets and Nuveen NASDAQ 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen NASDAQ 100 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 Nuveen NASDAQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen NASDAQ 100 has no effect on the direction of Brookfield Real i.e., Brookfield Real and Nuveen NASDAQ go up and down completely randomly.
Pair Corralation between Brookfield Real and Nuveen NASDAQ
Allowing for the 90-day total investment horizon Brookfield Real Assets is expected to under-perform the Nuveen NASDAQ. But the fund apears to be less risky and, when comparing its historical volatility, Brookfield Real Assets is 2.07 times less risky than Nuveen NASDAQ. The fund trades about -0.04 of its potential returns per unit of risk. The Nuveen NASDAQ 100 is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,365 in Nuveen NASDAQ 100 on January 10, 2025 and sell it today you would lose (18.00) from holding Nuveen NASDAQ 100 or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Brookfield Real Assets vs. Nuveen NASDAQ 100
Performance |
| Timeline |
| Brookfield Real Assets |
| Nuveen NASDAQ 100 |
Brookfield Real and Nuveen NASDAQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Real and Nuveen NASDAQ
The main advantage of trading using opposite Brookfield Real and Nuveen NASDAQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Real position performs unexpectedly, Nuveen NASDAQ 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 Nuveen NASDAQ will offset losses from the drop in Nuveen NASDAQ'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 |
| Nuveen NASDAQ vs. BlackRock Science and | Nuveen NASDAQ vs. BlackRock Health Sciences | Nuveen NASDAQ vs. BlackRock Health Sciences | Nuveen NASDAQ vs. Cohen Steers Qualityome |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |