Correlation Between Senvest Capital and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both Senvest Capital 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 Senvest Capital and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senvest Capital and Brookfield Infrastructure Partners, you can compare the effects of market volatilities on Senvest Capital 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 Senvest Capital with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senvest Capital and Brookfield Infrastructure.
Diversification Opportunities for Senvest Capital and Brookfield Infrastructure
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Senvest and Brookfield is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Senvest Capital and Brookfield Infrastructure Part in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and Senvest Capital 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 Senvest Capital 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 Senvest Capital i.e., Senvest Capital and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between Senvest Capital and Brookfield Infrastructure
Assuming the 90 days trading horizon Senvest Capital is expected to generate 0.66 times more return on investment than Brookfield Infrastructure. However, Senvest Capital is 1.52 times less risky than Brookfield Infrastructure. It trades about 0.3 of its potential returns per unit of risk. Brookfield Infrastructure Partners is currently generating about 0.12 per unit of risk. If you would invest 36,000 in Senvest Capital on August 16, 2025 and sell it today you would earn a total of 1,500 from holding Senvest Capital or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Senvest Capital vs. Brookfield Infrastructure Part
Performance |
| Timeline |
| Senvest Capital |
| Brookfield Infrastructure |
Senvest Capital and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senvest Capital and Brookfield Infrastructure
The main advantage of trading using opposite Senvest Capital and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senvest Capital 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.| Senvest Capital vs. Canadian General Investments | Senvest Capital vs. AGF Management Limited | Senvest Capital vs. Dividend 15 Split | Senvest Capital vs. Clairvest Group |
| Brookfield Infrastructure vs. Emera Inc | Brookfield Infrastructure vs. Brookfield Renewable Partners | Brookfield Infrastructure vs. Emera Srs C | Brookfield Infrastructure vs. Algonquin Power Utilities |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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