Correlation Between Just Energy and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both Just Energy and Brookfield Infrastructure 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 Just Energy and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Just Energy Group and Brookfield Infrastructure Partners, you can compare the effects of market volatilities on Just Energy and Brookfield Infrastructure 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 Just Energy with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Just Energy and Brookfield Infrastructure.
Diversification Opportunities for Just Energy and Brookfield Infrastructure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Just and Brookfield is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Just Energy Group and Brookfield Infrastructure Part in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and Just Energy 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 Just Energy Group are associated (or correlated) with Brookfield Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Infrastructure has no effect on the direction of Just Energy i.e., Just Energy and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between Just Energy and Brookfield Infrastructure
If you would invest (100.00) in Just Energy Group on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Just Energy Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Just Energy Group vs. Brookfield Infrastructure Part
Performance |
| Timeline |
| Just Energy Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brookfield Infrastructure |
Just Energy and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Just Energy and Brookfield Infrastructure
The main advantage of trading using opposite Just Energy and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Just Energy position performs unexpectedly, Brookfield Infrastructure 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 Infrastructure will offset losses from the drop in Brookfield Infrastructure's long position.| Just Energy vs. Kingdee International Software | Just Energy vs. Transphorm Technology | Just Energy vs. Grow Solutions Holdings | Just Energy vs. Kaltura |
| Brookfield Infrastructure vs. Allete Inc | Brookfield Infrastructure vs. Avista | Brookfield Infrastructure vs. NorthWestern | Brookfield Infrastructure vs. The AES |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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