Correlation Between Colas SA and Brookfield Reinsurance
Can any of the company-specific risk be diversified away by investing in both Colas SA and Brookfield Reinsurance 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 Colas SA and Brookfield Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colas SA and Brookfield Reinsurance, you can compare the effects of market volatilities on Colas SA and Brookfield Reinsurance 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 Colas SA with a short position of Brookfield Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colas SA and Brookfield Reinsurance.
Diversification Opportunities for Colas SA and Brookfield Reinsurance
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Colas and Brookfield is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Colas SA and Brookfield Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Reinsurance and Colas SA 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 Colas SA are associated (or correlated) with Brookfield Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Reinsurance has no effect on the direction of Colas SA i.e., Colas SA and Brookfield Reinsurance go up and down completely randomly.
Pair Corralation between Colas SA and Brookfield Reinsurance
If you would invest 4,027 in Brookfield Reinsurance on February 19, 2024 and sell it today you would earn a total of 424.00 from holding Brookfield Reinsurance or generate 10.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 1.56% |
Values | Daily Returns |
Colas SA vs. Brookfield Reinsurance
Performance |
Timeline |
Colas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brookfield Reinsurance |
Colas SA and Brookfield Reinsurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Colas SA and Brookfield Reinsurance
The main advantage of trading using opposite Colas SA and Brookfield Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colas SA position performs unexpectedly, Brookfield Reinsurance 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 Reinsurance will offset losses from the drop in Brookfield Reinsurance's long position.Colas SA vs. Reinsurance Group of | Colas SA vs. Siriuspoint | Colas SA vs. Brookfield Reinsurance | Colas SA vs. RenaissanceRe Holdings |
Brookfield Reinsurance vs. RenaissanceRe Holdings | Brookfield Reinsurance vs. PartnerRe | Brookfield Reinsurance vs. SCOR PK | Brookfield Reinsurance vs. SiriusPoint |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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