Correlation Between XPLR Infrastructure and Brookfield Renewable
Can any of the company-specific risk be diversified away by investing in both XPLR Infrastructure and Brookfield Renewable 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 XPLR Infrastructure and Brookfield Renewable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XPLR Infrastructure LP and Brookfield Renewable Partners, you can compare the effects of market volatilities on XPLR Infrastructure and Brookfield Renewable 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 XPLR Infrastructure with a short position of Brookfield Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of XPLR Infrastructure and Brookfield Renewable.
Diversification Opportunities for XPLR Infrastructure and Brookfield Renewable
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XPLR and Brookfield is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding XPLR Infrastructure LP and Brookfield Renewable Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Renewable and XPLR Infrastructure 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 XPLR Infrastructure LP are associated (or correlated) with Brookfield Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Renewable has no effect on the direction of XPLR Infrastructure i.e., XPLR Infrastructure and Brookfield Renewable go up and down completely randomly.
Pair Corralation between XPLR Infrastructure and Brookfield Renewable
Given the investment horizon of 90 days XPLR Infrastructure LP is expected to under-perform the Brookfield Renewable. In addition to that, XPLR Infrastructure is 1.1 times more volatile than Brookfield Renewable Partners. It trades about -0.08 of its total potential returns per unit of risk. Brookfield Renewable Partners is currently generating about 0.11 per unit of volatility. If you would invest 2,473 in Brookfield Renewable Partners on September 11, 2025 and sell it today you would earn a total of 346.00 from holding Brookfield Renewable Partners or generate 13.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XPLR Infrastructure LP vs. Brookfield Renewable Partners
Performance |
| Timeline |
| XPLR Infrastructure |
| Brookfield Renewable |
XPLR Infrastructure and Brookfield Renewable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XPLR Infrastructure and Brookfield Renewable
The main advantage of trading using opposite XPLR Infrastructure and Brookfield Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XPLR Infrastructure position performs unexpectedly, Brookfield Renewable 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 Renewable will offset losses from the drop in Brookfield Renewable's long position.| XPLR Infrastructure vs. Middlesex Water | XPLR Infrastructure vs. Entergy Arkansas LLC | XPLR Infrastructure vs. UNITIL | XPLR Infrastructure vs. Energy Vault Holdings |
| Brookfield Renewable vs. Companhia Paranaense de | Brookfield Renewable vs. Essential Utilities | Brookfield Renewable vs. Pinnacle West Capital | Brookfield Renewable vs. Companhia Energetica de |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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