Correlation Between Brookfield Infrastructure and Timbercreek Financial
Can any of the company-specific risk be diversified away by investing in both Brookfield Infrastructure and Timbercreek Financial 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 Timbercreek Financial 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 Timbercreek Financial Corp, you can compare the effects of market volatilities on Brookfield Infrastructure and Timbercreek Financial 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 Timbercreek Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Infrastructure and Timbercreek Financial.
Diversification Opportunities for Brookfield Infrastructure and Timbercreek Financial
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brookfield and Timbercreek is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Infrastructure Part and Timbercreek Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timbercreek Financial 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 Timbercreek Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timbercreek Financial has no effect on the direction of Brookfield Infrastructure i.e., Brookfield Infrastructure and Timbercreek Financial go up and down completely randomly.
Pair Corralation between Brookfield Infrastructure and Timbercreek Financial
Assuming the 90 days trading horizon Brookfield Infrastructure Partners is expected to generate 0.9 times more return on investment than Timbercreek Financial. However, Brookfield Infrastructure Partners is 1.12 times less risky than Timbercreek Financial. It trades about 0.2 of its potential returns per unit of risk. Timbercreek Financial Corp is currently generating about -0.11 per unit of risk. If you would invest 4,242 in Brookfield Infrastructure Partners on September 12, 2025 and sell it today you would earn a total of 622.00 from holding Brookfield Infrastructure Partners or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Infrastructure Part vs. Timbercreek Financial Corp
Performance |
| Timeline |
| Brookfield Infrastructure |
| Timbercreek Financial |
Brookfield Infrastructure and Timbercreek Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Infrastructure and Timbercreek Financial
The main advantage of trading using opposite Brookfield Infrastructure and Timbercreek Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Infrastructure position performs unexpectedly, Timbercreek Financial 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 Timbercreek Financial will offset losses from the drop in Timbercreek Financial's long position.| Brookfield Infrastructure vs. Emera Inc | Brookfield Infrastructure vs. Brookfield Renewable Partners | Brookfield Infrastructure vs. Emera Srs C | Brookfield Infrastructure vs. Algonquin Power Utilities |
| Timbercreek Financial vs. Atrium Mortgage Investment | Timbercreek Financial vs. Firm Capital Mortgage | Timbercreek Financial vs. MCAN Mortgage | Timbercreek Financial vs. VersaBank |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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