Correlation Between Schweizerische Nationalbank and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both Schweizerische Nationalbank 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 Schweizerische Nationalbank and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweizerische Nationalbank and Brookfield Infrastructure Corp, you can compare the effects of market volatilities on Schweizerische Nationalbank 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 Schweizerische Nationalbank with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweizerische Nationalbank and Brookfield Infrastructure.
Diversification Opportunities for Schweizerische Nationalbank and Brookfield Infrastructure
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Schweizerische and Brookfield is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Schweizerische Nationalbank and Brookfield Infrastructure Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and Schweizerische Nationalbank 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 Schweizerische Nationalbank 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 Schweizerische Nationalbank i.e., Schweizerische Nationalbank and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between Schweizerische Nationalbank and Brookfield Infrastructure
Assuming the 90 days horizon Schweizerische Nationalbank is expected to generate 1.14 times less return on investment than Brookfield Infrastructure. In addition to that, Schweizerische Nationalbank is 1.52 times more volatile than Brookfield Infrastructure Corp. It trades about 0.09 of its total potential returns per unit of risk. Brookfield Infrastructure Corp is currently generating about 0.15 per unit of volatility. If you would invest 4,023 in Brookfield Infrastructure Corp on September 8, 2025 and sell it today you would earn a total of 663.00 from holding Brookfield Infrastructure Corp or generate 16.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweizerische Nationalbank vs. Brookfield Infrastructure Corp
Performance |
| Timeline |
| Schweizerische Nationalbank |
| Brookfield Infrastructure |
Schweizerische Nationalbank and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweizerische Nationalbank and Brookfield Infrastructure
The main advantage of trading using opposite Schweizerische Nationalbank and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweizerische Nationalbank 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.The idea behind Schweizerische Nationalbank and Brookfield Infrastructure 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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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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