Correlation Between Blackhawk Growth and Brookfield Business

Can any of the company-specific risk be diversified away by investing in both Blackhawk Growth and Brookfield Business 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 Blackhawk Growth and Brookfield Business into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackhawk Growth Corp and Brookfield Business Corp, you can compare the effects of market volatilities on Blackhawk Growth and Brookfield Business 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 Blackhawk Growth with a short position of Brookfield Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackhawk Growth and Brookfield Business.

Diversification Opportunities for Blackhawk Growth and Brookfield Business

0.0

Correlation Coefficient

Blackhawk Growth  Brookfield Business

Pay attention - limited upside

The 3 months correlation between Blackhawk and Brookfield is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blackhawk Growth Corp and Brookfield Business Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Business Corp and Blackhawk Growth 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 Blackhawk Growth Corp are associated (or correlated) with Brookfield Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Business Corp has no effect on the direction of Blackhawk Growth i.e., Blackhawk Growth and Brookfield Business go up and down completely randomly.

Pair Corralation between Blackhawk Growth and Brookfield Business

If you would invest  2,759  in Brookfield Business Corp on November 28, 2024 and sell it today you would lose (17.00) from holding Brookfield Business Corp or give up 0.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Blackhawk Growth Corp  vs.  Brookfield Business Corp

Blackhawk Growth Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackhawk Growth Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Blackhawk Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Brookfield Business Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brookfield Business Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Brookfield Business is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Blackhawk Growth and Brookfield Business

The main advantage of trading using opposite Blackhawk Growth and Brookfield Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackhawk Growth position performs unexpectedly, Brookfield Business 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 Business will offset losses from the drop in Brookfield Business' long position.

The idea behind Blackhawk Growth Corp and Brookfield Business Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.