Correlation Between Brookfield Real and Allianzgi Global

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

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

Diversification Opportunities for Brookfield Real and Allianzgi Global

0.89

Correlation Coefficient

Brookfield Real  Allianzgi Global

Very poor diversification

The 3 months correlation between Brookfield and Allianzgi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Real Assets and Allianzgi Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Global All and Brookfield Real 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 Real Assets are associated (or correlated) with Allianzgi Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Global All has no effect on the direction of Brookfield Real i.e., Brookfield Real and Allianzgi Global go up and down completely randomly.

Pair Corralation between Brookfield Real and Allianzgi Global

Allowing for the 90-day total investment horizon Brookfield Real Assets is expected to generate 1.02 times more return on investment than Allianzgi Global. However, Brookfield Real is 1.02 times more volatile than Allianzgi Global Allocation. It trades about 0.13 of its potential returns per unit of risk. Allianzgi Global Allocation is currently generating about 0.09 per unit of risk. If you would invest  1,141  in Brookfield Real Assets on September 12, 2024 and sell it today you would earn a total of  204.00  from holding Brookfield Real Assets or generate 17.88% return on investment over 90 days.

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

Brookfield Real Assets  vs.  Allianzgi Global Allocation

Brookfield Real Assets

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Real Assets are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Brookfield Real is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Allianzgi Global All

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Global Allocation are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Allianzgi Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Brookfield Real and Allianzgi Global

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

The idea behind Brookfield Real Assets and Allianzgi Global Allocation 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..