Correlation Between CI Financial and Brookfield Office

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

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

Diversification Opportunities for CI Financial and Brookfield Office

0.91

Correlation Coefficient

CI Financial  Brookfield Office

Almost no diversification

The 3 months correlation between CIX and Brookfield is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and Brookfield Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Office and CI Financial 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 CI Financial Corp are associated (or correlated) with Brookfield Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Office has no effect on the direction of CI Financial i.e., CI Financial and Brookfield Office go up and down completely randomly.

Pair Corralation between CI Financial and Brookfield Office

Assuming the 90 days trading horizon CI Financial is expected to generate 12.37 times less return on investment than Brookfield Office. But when comparing it to its historical volatility, CI Financial Corp is 6.44 times less risky than Brookfield Office. It trades about 0.21 of its potential returns per unit of risk. Brookfield Office Properties is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  1,529  in Brookfield Office Properties on April 24, 2025 and sell it today you would earn a total of  343.00  from holding Brookfield Office Properties or generate 22.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

CI Financial Corp  vs.  Brookfield Office Properties

CI Financial Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CI Financial Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, CI Financial is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Brookfield Office

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Office Properties are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Brookfield Office sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CI Financial and Brookfield Office

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

The idea behind CI Financial Corp and Brookfield Office Properties 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.