Correlation Between Alimentation Couchen and Brookfield Infrastructure

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

By analyzing existing cross correlation between Alimentation Couchen Tard and Brookfield Infrastructure Corp, you can compare the effects of market volatilities on Alimentation Couchen 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 Alimentation Couchen with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimentation Couchen and Brookfield Infrastructure.

Diversification Opportunities for Alimentation Couchen and Brookfield Infrastructure

-0.22

Correlation Coefficient

Alimentation Couchen  Brookfield Infrastructure

Very good diversification

The 3 months correlation between Alimentation and Brookfield is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Alimentation Couchen Tard and Brookfield Infrastructure Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and Alimentation Couchen 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 Alimentation Couchen Tard 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 Alimentation Couchen i.e., Alimentation Couchen and Brookfield Infrastructure go up and down completely randomly.

Pair Corralation between Alimentation Couchen and Brookfield Infrastructure

Assuming the 90 days trading horizon Alimentation Couchen is expected to generate 4.13 times less return on investment than Brookfield Infrastructure. In addition to that, Alimentation Couchen is 1.58 times more volatile than Brookfield Infrastructure Corp. It trades about 0.03 of its total potential returns per unit of risk. Brookfield Infrastructure Corp is currently generating about 0.23 per unit of volatility. If you would invest  4,883  in Brookfield Infrastructure Corp on April 22, 2025 and sell it today you would earn a total of  805.00  from holding Brookfield Infrastructure Corp or generate 16.49% return on investment over 90 days.

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

Alimentation Couchen Tard  vs.  Brookfield Infrastructure Corp

Alimentation Couchen Tard

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alimentation Couchen Tard are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Alimentation Couchen is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Brookfield Infrastructure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Infrastructure Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Brookfield Infrastructure displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alimentation Couchen and Brookfield Infrastructure

The main advantage of trading using opposite Alimentation Couchen and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimentation Couchen 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.

The idea behind Alimentation Couchen Tard and Brookfield Infrastructure Corp 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.