Correlation Between Helios Fairfax and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both Helios Fairfax and Brookfield Infrastructure 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 Helios Fairfax and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helios Fairfax Partners and Brookfield Infrastructure Corp, you can compare the effects of market volatilities on Helios Fairfax and Brookfield Infrastructure 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 Helios Fairfax with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helios Fairfax and Brookfield Infrastructure.
Diversification Opportunities for Helios Fairfax and Brookfield Infrastructure
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Helios and Brookfield is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Helios Fairfax Partners and Brookfield Infrastructure Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and Helios Fairfax 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 Helios Fairfax Partners are associated (or correlated) with Brookfield Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Infrastructure has no effect on the direction of Helios Fairfax i.e., Helios Fairfax and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between Helios Fairfax and Brookfield Infrastructure
Assuming the 90 days trading horizon Helios Fairfax Partners is expected to under-perform the Brookfield Infrastructure. But the stock apears to be less risky and, when comparing its historical volatility, Helios Fairfax Partners is 1.03 times less risky than Brookfield Infrastructure. The stock trades about -0.05 of its potential returns per unit of risk. The Brookfield Infrastructure Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,480 in Brookfield Infrastructure Corp on August 13, 2025 and sell it today you would earn a total of 874.00 from holding Brookfield Infrastructure Corp or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helios Fairfax Partners vs. Brookfield Infrastructure Corp
Performance |
| Timeline |
| Helios Fairfax Partners |
| Brookfield Infrastructure |
Risk-Adjusted Performance
Fair
Weak | Strong |
Helios Fairfax and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helios Fairfax and Brookfield Infrastructure
The main advantage of trading using opposite Helios Fairfax and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helios Fairfax position performs unexpectedly, Brookfield Infrastructure 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 Infrastructure will offset losses from the drop in Brookfield Infrastructure's long position.| Helios Fairfax vs. AKITA Drilling | Helios Fairfax vs. CVW CleanTech | Helios Fairfax vs. Pond Technologies Holdings | Helios Fairfax vs. Uniserve Communications 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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