Correlation Between Wetouch Technology and Brookfield Property

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

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

Diversification Opportunities for Wetouch Technology and Brookfield Property

-0.67

Correlation Coefficient

Wetouch Technology  Brookfield Property

Excellent diversification

The 3 months correlation between Wetouch and Brookfield is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Wetouch Technology Common and Brookfield Property Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Property and Wetouch Technology 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 Wetouch Technology Common are associated (or correlated) with Brookfield Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Property has no effect on the direction of Wetouch Technology i.e., Wetouch Technology and Brookfield Property go up and down completely randomly.

Pair Corralation between Wetouch Technology and Brookfield Property

Given the investment horizon of 90 days Wetouch Technology Common is expected to under-perform the Brookfield Property. In addition to that, Wetouch Technology is 4.1 times more volatile than Brookfield Property Partners. It trades about -0.05 of its total potential returns per unit of risk. Brookfield Property Partners is currently generating about 0.14 per unit of volatility. If you would invest  1,211  in Brookfield Property Partners on December 31, 2024 and sell it today you would earn a total of  117.00  from holding Brookfield Property Partners or generate 9.66% return on investment over 90 days.

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

Wetouch Technology Common  vs.  Brookfield Property Partners

Wetouch Technology Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wetouch Technology Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Brookfield Property

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Property Partners are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Brookfield Property may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Pair Trading with Wetouch Technology and Brookfield Property

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

The idea behind Wetouch Technology Common and Brookfield Property Partners 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.