Correlation Between Brookfield Property and Essential Properties
Can any of the company-specific risk be diversified away by investing in both Brookfield Property and Essential Properties 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 Property and Essential Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Property Partners and Essential Properties Realty, you can compare the effects of market volatilities on Brookfield Property and Essential Properties 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 Property with a short position of Essential Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Property and Essential Properties.
Diversification Opportunities for Brookfield Property and Essential Properties
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brookfield and Essential is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Property Partners and Essential Properties Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Essential Properties and Brookfield Property 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 Property Partners are associated (or correlated) with Essential Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essential Properties has no effect on the direction of Brookfield Property i.e., Brookfield Property and Essential Properties go up and down completely randomly.
Pair Corralation between Brookfield Property and Essential Properties
Assuming the 90 days horizon Brookfield Property Partners is expected to under-perform the Essential Properties. In addition to that, Brookfield Property is 1.04 times more volatile than Essential Properties Realty. It trades about -0.01 of its total potential returns per unit of risk. Essential Properties Realty is currently generating about 0.03 per unit of volatility. If you would invest 3,094 in Essential Properties Realty on August 27, 2025 and sell it today you would earn a total of 61.00 from holding Essential Properties Realty or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Property Partners vs. Essential Properties Realty
Performance |
| Timeline |
| Brookfield Property |
| Essential Properties |
Brookfield Property and Essential Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Property and Essential Properties
The main advantage of trading using opposite Brookfield Property and Essential Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Property position performs unexpectedly, Essential Properties 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 Essential Properties will offset losses from the drop in Essential Properties' long position.| Brookfield Property vs. American Transportation Holdings | Brookfield Property vs. Arrow Electronics | Brookfield Property vs. Fortress Transportation and | Brookfield Property vs. STMicroelectronics NV |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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