Correlation Between Brookfield Corp and Pineapple Financial

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

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

Diversification Opportunities for Brookfield Corp and Pineapple Financial

0.72

Correlation Coefficient

Brookfield Corp  Pineapple Financial

Poor diversification

The 3 months correlation between Brookfield and Pineapple is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Corp and Pineapple Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pineapple Financial and Brookfield Corp 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 Corp are associated (or correlated) with Pineapple Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pineapple Financial has no effect on the direction of Brookfield Corp i.e., Brookfield Corp and Pineapple Financial go up and down completely randomly.

Pair Corralation between Brookfield Corp and Pineapple Financial

Allowing for the 90-day total investment horizon Brookfield Corp is expected to under-perform the Pineapple Financial. But the stock apears to be less risky and, when comparing its historical volatility, Brookfield Corp is 3.0 times less risky than Pineapple Financial. The stock trades about -0.09 of its potential returns per unit of risk. The Pineapple Financial is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  37.00  in Pineapple Financial on December 27, 2024 and sell it today you would lose (4.00) from holding Pineapple Financial or give up 10.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Brookfield Corp  vs.  Pineapple Financial

Brookfield Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brookfield Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Brookfield Corp is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pineapple Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pineapple Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Brookfield Corp and Pineapple Financial

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

The idea behind Brookfield Corp and Pineapple Financial 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.

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 Commodity Directory module to find actively traded commodities issued by global exchanges.