Correlation Between Brookfield Asset and W P

Can any of the company-specific risk be diversified away by investing in both Brookfield Asset and W P 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 Brookfield Asset and W P into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brookfield Asset Management and W P Carey, you can compare the effects of market volatilities on Brookfield Asset and W P 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 Brookfield Asset with a short position of W P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Asset and W P.

Diversification Opportunities for Brookfield Asset and W P

-0.74

Correlation Coefficient

Brookfield Asset  W P

Pay attention - limited upside

The 3 months correlation between Brookfield and WPC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Asset Management and W P Carey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on W P Carey and Brookfield Asset 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 Brookfield Asset Management are associated (or correlated) with W P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of W P Carey has no effect on the direction of Brookfield Asset i.e., Brookfield Asset and W P go up and down completely randomly.

Pair Corralation between Brookfield Asset and W P

Considering the 90-day investment horizon Brookfield Asset Management is expected to under-perform the W P. In addition to that, Brookfield Asset is 1.84 times more volatile than W P Carey. It trades about -0.08 of its total potential returns per unit of risk. W P Carey is currently generating about 0.19 per unit of volatility. If you would invest  6,100  in W P Carey on July 21, 2025 and sell it today you would earn a total of  746.00  from holding W P Carey or generate 12.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Brookfield Asset Management  vs.  W P Carey

Brookfield Asset Man

Risk-Adjusted Performance

Weakest

Over the last 90 days Brookfield Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

W P Carey

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in W P Carey are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, W P may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Brookfield Asset and W P

The main advantage of trading using opposite Brookfield Asset and W P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Asset position performs unexpectedly, W P 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 W P will offset losses from the drop in W P's long position.

The idea behind Brookfield Asset Management and W P Carey 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 CEOs Directory module to screen CEOs from public companies around the world.