Correlation Between Brookfield Corp and Open Lending
Can any of the company-specific risk be diversified away by investing in both Brookfield Corp and Open Lending 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 Corp and Open Lending into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Corp and Open Lending Corp, you can compare the effects of market volatilities on Brookfield Corp and Open Lending 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 Corp with a short position of Open Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Corp and Open Lending.
Diversification Opportunities for Brookfield Corp and Open Lending
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brookfield and Open is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Corp and Open Lending Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Open Lending Corp and Brookfield Corp 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 Corp are associated (or correlated) with Open Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Open Lending Corp has no effect on the direction of Brookfield Corp i.e., Brookfield Corp and Open Lending go up and down completely randomly.
Pair Corralation between Brookfield Corp and Open Lending
Allowing for the 90-day total investment horizon Brookfield Corp is expected to generate 0.49 times more return on investment than Open Lending. However, Brookfield Corp is 2.04 times less risky than Open Lending. It trades about 0.1 of its potential returns per unit of risk. Open Lending Corp is currently generating about -0.07 per unit of risk. If you would invest 6,257 in Brookfield Corp on June 9, 2025 and sell it today you would earn a total of 394.00 from holding Brookfield Corp or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Corp vs. Open Lending Corp
Performance |
| Timeline |
| Brookfield Corp |
| Open Lending Corp |
Brookfield Corp and Open Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Corp and Open Lending
The main advantage of trading using opposite Brookfield Corp and Open Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Corp position performs unexpectedly, Open Lending 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 Open Lending will offset losses from the drop in Open Lending's long position.| Brookfield Corp vs. Visa Class A | Brookfield Corp vs. Deutsche Bank AG | Brookfield Corp vs. Dynex Capital | Brookfield Corp vs. Goldman Sachs Group |
| Open Lending vs. FirstCash | Open Lending vs. Orix Corp Ads | Open Lending vs. Enova International | Open Lending vs. Oportun Financial Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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