Correlation Between Calian Technologies and Brookfield Asset

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

By analyzing existing cross correlation between Calian Technologies and Brookfield Asset Management, you can compare the effects of market volatilities on Calian Technologies and Brookfield Asset 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 Calian Technologies with a short position of Brookfield Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and Brookfield Asset.

Diversification Opportunities for Calian Technologies and Brookfield Asset

-0.08

Correlation Coefficient

Calian Technologies  Brookfield Asset

Good diversification

The 3 months correlation between Calian and Brookfield is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies and Brookfield Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Asset Man and Calian Technologies 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 Calian Technologies are associated (or correlated) with Brookfield Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Asset Man has no effect on the direction of Calian Technologies i.e., Calian Technologies and Brookfield Asset go up and down completely randomly.

Pair Corralation between Calian Technologies and Brookfield Asset

Assuming the 90 days trading horizon Calian Technologies is expected to generate 1.85 times less return on investment than Brookfield Asset. In addition to that, Calian Technologies is 1.56 times more volatile than Brookfield Asset Management. It trades about 0.08 of its total potential returns per unit of risk. Brookfield Asset Management is currently generating about 0.23 per unit of volatility. If you would invest  6,484  in Brookfield Asset Management on April 20, 2025 and sell it today you would earn a total of  1,856  from holding Brookfield Asset Management or generate 28.62% return on investment over 90 days.

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

Calian Technologies  vs.  Brookfield Asset Management

Calian Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calian Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Calian Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Brookfield Asset Man

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Asset Management are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal primary indicators, Brookfield Asset displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calian Technologies and Brookfield Asset

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

The idea behind Calian Technologies and Brookfield Asset Management 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.