Correlation Between Interactive Brokers and Brookfield Corp

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Can any of the company-specific risk be diversified away by investing in both Interactive Brokers and Brookfield Corp 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 Interactive Brokers and Brookfield Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interactive Brokers Group and Brookfield Corp, you can compare the effects of market volatilities on Interactive Brokers and Brookfield Corp 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 Interactive Brokers with a short position of Brookfield Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Brokers and Brookfield Corp.

Diversification Opportunities for Interactive Brokers and Brookfield Corp

0.41
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Interactive and Brookfield is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Brokers Group and Brookfield Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Corp and Interactive Brokers 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 Interactive Brokers Group are associated (or correlated) with Brookfield Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Corp has no effect on the direction of Interactive Brokers i.e., Interactive Brokers and Brookfield Corp go up and down completely randomly.

Pair Corralation between Interactive Brokers and Brookfield Corp

Given the investment horizon of 90 days Interactive Brokers Group is expected to generate 1.43 times more return on investment than Brookfield Corp. However, Interactive Brokers is 1.43 times more volatile than Brookfield Corp. It trades about 0.04 of its potential returns per unit of risk. Brookfield Corp is currently generating about 0.0 per unit of risk. If you would invest  6,232  in Interactive Brokers Group on August 22, 2025 and sell it today you would earn a total of  224.00  from holding Interactive Brokers Group or generate 3.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Interactive Brokers Group  vs.  Brookfield Corp

 Performance 
       Timeline  
Interactive Brokers 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Interactive Brokers Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable forward-looking signals, Interactive Brokers is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.
Brookfield Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Brookfield Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Brookfield Corp is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Interactive Brokers and Brookfield Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Interactive Brokers and Brookfield Corp

The main advantage of trading using opposite Interactive Brokers and Brookfield Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Brokers position performs unexpectedly, Brookfield Corp 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 Corp will offset losses from the drop in Brookfield Corp's long position.
The idea behind Interactive Brokers Group and Brookfield Corp 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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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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