Correlation Between Centuri Holdings, and Brookfield Infrastructure

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

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

Diversification Opportunities for Centuri Holdings, and Brookfield Infrastructure

0.75

Correlation Coefficient

Centuri Holdings,  Brookfield Infrastructure

Poor diversification

The 3 months correlation between Centuri and Brookfield is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Centuri Holdings, and Brookfield Infrastructure Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and Centuri Holdings, 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 Centuri Holdings, 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 Centuri Holdings, i.e., Centuri Holdings, and Brookfield Infrastructure go up and down completely randomly.

Pair Corralation between Centuri Holdings, and Brookfield Infrastructure

Given the investment horizon of 90 days Centuri Holdings, is expected to generate 2.38 times more return on investment than Brookfield Infrastructure. However, Centuri Holdings, is 2.38 times more volatile than Brookfield Infrastructure Corp. It trades about 0.09 of its potential returns per unit of risk. Brookfield Infrastructure Corp is currently generating about 0.04 per unit of risk. If you would invest  1,841  in Centuri Holdings, on May 5, 2025 and sell it today you would earn a total of  263.00  from holding Centuri Holdings, or generate 14.29% return on investment over 90 days.

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

Centuri Holdings,  vs.  Brookfield Infrastructure Corp

Centuri Holdings,

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Centuri Holdings, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Centuri Holdings, demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Brookfield Infrastructure

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Infrastructure Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Brookfield Infrastructure is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Centuri Holdings, and Brookfield Infrastructure

The main advantage of trading using opposite Centuri Holdings, and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuri Holdings, 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 Centuri Holdings, 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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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.