Correlation Between Brighthouse Financial and Corebridge Financial

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

By analyzing existing cross correlation between Brighthouse Financial and Corebridge Financial, you can compare the effects of market volatilities on Brighthouse Financial and Corebridge Financial 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 Brighthouse Financial with a short position of Corebridge Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brighthouse Financial and Corebridge Financial.

Diversification Opportunities for Brighthouse Financial and Corebridge Financial

-0.77

Correlation Coefficient

Brighthouse Financial  Corebridge Financial

Pay attention - limited upside

The 3 months correlation between Brighthouse and Corebridge is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Brighthouse Financial and Corebridge Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corebridge Financial and Brighthouse Financial 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 Brighthouse Financial are associated (or correlated) with Corebridge Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corebridge Financial has no effect on the direction of Brighthouse Financial i.e., Brighthouse Financial and Corebridge Financial go up and down completely randomly.

Pair Corralation between Brighthouse Financial and Corebridge Financial

Considering the 90-day investment horizon Brighthouse Financial is expected to under-perform the Corebridge Financial. In addition to that, Brighthouse Financial is 1.45 times more volatile than Corebridge Financial. It trades about -0.14 of its total potential returns per unit of risk. Corebridge Financial is currently generating about 0.13 per unit of volatility. If you would invest  3,033  in Corebridge Financial on May 4, 2025 and sell it today you would earn a total of  415.00  from holding Corebridge Financial or generate 13.68% return on investment over 90 days.

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

Brighthouse Financial  vs.  Corebridge Financial

Brighthouse Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brighthouse Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Corebridge Financial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Corebridge Financial are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental drivers, Corebridge Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Brighthouse Financial and Corebridge Financial

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

The idea behind Brighthouse Financial and Corebridge Financial 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.