Correlation Between Brookfield Infrastructure and True North
Can any of the company-specific risk be diversified away by investing in both Brookfield Infrastructure and True North 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 True North into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Infrastructure Partners and True North Commercial, you can compare the effects of market volatilities on Brookfield Infrastructure and True North 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 True North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Infrastructure and True North.
Diversification Opportunities for Brookfield Infrastructure and True North
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brookfield and True is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Infrastructure Part and True North Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True North Commercial 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 Partners are associated (or correlated) with True North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True North Commercial has no effect on the direction of Brookfield Infrastructure i.e., Brookfield Infrastructure and True North go up and down completely randomly.
Pair Corralation between Brookfield Infrastructure and True North
Assuming the 90 days trading horizon Brookfield Infrastructure Partners is expected to generate 0.49 times more return on investment than True North. However, Brookfield Infrastructure Partners is 2.05 times less risky than True North. It trades about 0.1 of its potential returns per unit of risk. True North Commercial is currently generating about 0.05 per unit of risk. If you would invest 2,517 in Brookfield Infrastructure Partners on August 14, 2025 and sell it today you would earn a total of 63.00 from holding Brookfield Infrastructure Partners or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Infrastructure Part vs. True North Commercial
Performance |
| Timeline |
| Brookfield Infrastructure |
| True North Commercial |
Brookfield Infrastructure and True North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Infrastructure and True North
The main advantage of trading using opposite Brookfield Infrastructure and True North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Infrastructure position performs unexpectedly, True North 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 True North will offset losses from the drop in True North's long position.The idea behind Brookfield Infrastructure Partners and True North Commercial 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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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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