Correlation Between Integral and Brookfield Wealth

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

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

Diversification Opportunities for Integral and Brookfield Wealth

-0.16

Correlation Coefficient

Integral  Brookfield Wealth

Good diversification

The 3 months correlation between Integral and Brookfield is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Brookfield Wealth Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Wealth and Integral 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 Integral Ad Science are associated (or correlated) with Brookfield Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Wealth has no effect on the direction of Integral i.e., Integral and Brookfield Wealth go up and down completely randomly.

Pair Corralation between Integral and Brookfield Wealth

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Brookfield Wealth. In addition to that, Integral is 1.33 times more volatile than Brookfield Wealth Solutions. It trades about -0.05 of its total potential returns per unit of risk. Brookfield Wealth Solutions is currently generating about 0.14 per unit of volatility. If you would invest  5,699  in Brookfield Wealth Solutions on October 23, 2024 and sell it today you would earn a total of  274.00  from holding Brookfield Wealth Solutions or generate 4.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Integral Ad Science  vs.  Brookfield Wealth Solutions

Integral Ad Science

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integral Ad Science has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Integral is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Brookfield Wealth

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Wealth Solutions are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Brookfield Wealth may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Integral and Brookfield Wealth

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

The idea behind Integral Ad Science and Brookfield Wealth Solutions 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 Global Correlations module to find global opportunities by holding instruments from different markets.