Correlation Between Starwood Property and Brookfield Property
Can any of the company-specific risk be diversified away by investing in both Starwood Property and Brookfield Property 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 Starwood Property and Brookfield Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Starwood Property Trust and Brookfield Property Partners, you can compare the effects of market volatilities on Starwood Property and Brookfield Property 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 Starwood Property with a short position of Brookfield Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starwood Property and Brookfield Property.
Diversification Opportunities for Starwood Property and Brookfield Property
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Starwood and Brookfield is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Starwood Property Trust and Brookfield Property Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Property and Starwood 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 Starwood Property Trust are associated (or correlated) with Brookfield Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Property has no effect on the direction of Starwood Property i.e., Starwood Property and Brookfield Property go up and down completely randomly.
Pair Corralation between Starwood Property and Brookfield Property
Given the investment horizon of 90 days Starwood Property Trust is expected to generate 1.01 times more return on investment than Brookfield Property. However, Starwood Property is 1.01 times more volatile than Brookfield Property Partners. It trades about 0.05 of its potential returns per unit of risk. Brookfield Property Partners is currently generating about 0.04 per unit of risk. If you would invest 1,793 in Starwood Property Trust on October 10, 2025 and sell it today you would earn a total of 44.00 from holding Starwood Property Trust or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Starwood Property Trust vs. Brookfield Property Partners
Performance |
| Timeline |
| Starwood Property Trust |
| Brookfield Property |
Starwood Property and Brookfield Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Starwood Property and Brookfield Property
The main advantage of trading using opposite Starwood Property and Brookfield Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starwood Property position performs unexpectedly, Brookfield Property 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 Property will offset losses from the drop in Brookfield Property's long position.| Starwood Property vs. Rithm Capital Corp | Starwood Property vs. First Industrial Realty | Starwood Property vs. STAG Industrial | Starwood Property vs. Vornado Realty Trust |
| Brookfield Property vs. Opendoor Technologies | Brookfield Property vs. Rithm Capital Corp | Brookfield Property vs. Ryman Hospitality Properties | Brookfield Property vs. Howard Hughes Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |