Correlation Between I 80 and Brookfield Asset

Can any of the company-specific risk be diversified away by investing in both I 80 and Brookfield Asset 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 I 80 and Brookfield Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between i 80 Gold Corp and Brookfield Asset Management, you can compare the effects of market volatilities on I 80 and Brookfield Asset 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 I 80 with a short position of Brookfield Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Brookfield Asset.

Diversification Opportunities for I 80 and Brookfield Asset

-0.77

Correlation Coefficient

I 80  Brookfield Asset

Pay attention - limited upside

The 3 months correlation between IAU and Brookfield is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding i 80 Gold Corp and Brookfield Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Asset Man and I 80 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 i 80 Gold Corp are associated (or correlated) with Brookfield Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Asset Man has no effect on the direction of I 80 i.e., I 80 and Brookfield Asset go up and down completely randomly.

Pair Corralation between I 80 and Brookfield Asset

Assuming the 90 days trading horizon i 80 Gold Corp is expected to under-perform the Brookfield Asset. In addition to that, I 80 is 6.57 times more volatile than Brookfield Asset Management. It trades about -0.02 of its total potential returns per unit of risk. Brookfield Asset Management is currently generating about 0.18 per unit of volatility. If you would invest  6,575  in Brookfield Asset Management on October 10, 2024 and sell it today you would earn a total of  1,176  from holding Brookfield Asset Management or generate 17.89% return on investment over 90 days.

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

i 80 Gold Corp  vs.  Brookfield Asset Management

i 80 Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days i 80 Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Brookfield Asset Man

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Asset Management are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Brookfield Asset displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with I 80 and Brookfield Asset

The main advantage of trading using opposite I 80 and Brookfield Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, Brookfield Asset 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 Asset will offset losses from the drop in Brookfield Asset's long position.

The idea behind i 80 Gold Corp and Brookfield Asset Management 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.