Correlation Between TUT Fitness and Brookfield

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

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

Diversification Opportunities for TUT Fitness and Brookfield

0.0

Correlation Coefficient

TUT Fitness  Brookfield

Pay attention - limited upside

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

Pair Corralation between TUT Fitness and Brookfield

Assuming the 90 days horizon TUT Fitness Group is expected to under-perform the Brookfield. But the stock apears to be less risky and, when comparing its historical volatility, TUT Fitness Group is 1.33 times less risky than Brookfield. The stock trades about -0.09 of its potential returns per unit of risk. The Brookfield is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,260  in Brookfield on October 4, 2024 and sell it today you would earn a total of  205.00  from holding Brookfield or generate 9.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TUT Fitness Group  vs.  Brookfield

TUT Fitness Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TUT Fitness Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, TUT Fitness is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Brookfield

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Brookfield is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with TUT Fitness and Brookfield

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

The idea behind TUT Fitness Group and Brookfield 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.