Correlation Between Brookfield Infrastructure and Alimentation Couchen

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

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

Diversification Opportunities for Brookfield Infrastructure and Alimentation Couchen

-0.19

Correlation Coefficient

Brookfield Infrastructure  Alimentation Couchen

Good diversification

The 3 months correlation between Brookfield and Alimentation is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Infrastructure Corp and Alimentation Couchen Tard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alimentation Couchen Tard and Brookfield Infrastructure 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 Infrastructure Corp are associated (or correlated) with Alimentation Couchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alimentation Couchen Tard has no effect on the direction of Brookfield Infrastructure i.e., Brookfield Infrastructure and Alimentation Couchen go up and down completely randomly.

Pair Corralation between Brookfield Infrastructure and Alimentation Couchen

Assuming the 90 days trading horizon Brookfield Infrastructure Corp is expected to generate 0.64 times more return on investment than Alimentation Couchen. However, Brookfield Infrastructure Corp is 1.57 times less risky than Alimentation Couchen. It trades about 0.2 of its potential returns per unit of risk. Alimentation Couchen Tard is currently generating about 0.05 per unit of risk. If you would invest  4,934  in Brookfield Infrastructure Corp on April 23, 2025 and sell it today you would earn a total of  721.00  from holding Brookfield Infrastructure Corp or generate 14.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Brookfield Infrastructure Corp  vs.  Alimentation Couchen Tard

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 16 (%) 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.

Alimentation Couchen Tard

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Alimentation Couchen Tard are ranked lower than 4 (%) 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 recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Brookfield Infrastructure and Alimentation Couchen

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

The idea behind Brookfield Infrastructure Corp and Alimentation Couchen Tard 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.