Brookfield Office Properties Preferred Stock Volatility
| BPO-PE Preferred Stock | CAD 17.73 0.03 0.17% |
Brookfield Office appears to be very steady, given 3 months investment horizon. Brookfield Office secures Sharpe Ratio (or Efficiency) of 0.34, which signifies that the company had a 0.34% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Brookfield Office Properties, which you can use to evaluate the volatility of the firm. Please makes use of Brookfield Office's Mean Deviation of 0.7404, coefficient of variation of 298.61, and Risk Adjusted Performance of 0.245 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Brookfield Office's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Brookfield Office Preferred Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Brookfield daily returns, and it is calculated using variance and standard deviation. We also use Brookfield's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Brookfield Office volatility.
Brookfield |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Brookfield Office can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Brookfield Office at lower prices to lower their average cost per share. Similarly, when the prices of Brookfield Office's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Brookfield Preferred Stock
| 0.72 | FFH-PF | Fairfax Financial | PairCorr |
| 0.68 | FFH-PH | Fairfax Financial | PairCorr |
| 0.74 | FFH | Fairfax Financial | PairCorr |
| 0.66 | FFH-PJ | Fairfax Financial | PairCorr |
| 0.64 | FFH-PM | Fairfax Financial | PairCorr |
| 0.7 | FFH-PD | Fairfax Financial | PairCorr |
| 0.68 | GS | GOLDMAN SACHS CDR | PairCorr |
| 0.7 | FFH-PE | Fairfax Financial | PairCorr |
| 0.66 | FFH-PI | Fairfax Financial | PairCorr |
Brookfield Office Market Sensitivity And Downside Risk
Brookfield Office's beta coefficient measures the volatility of Brookfield preferred stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Brookfield preferred stock's returns against your selected market. In other words, Brookfield Office's beta of 0.0846 provides an investor with an approximation of how much risk Brookfield Office preferred stock can potentially add to one of your existing portfolios. Brookfield Office Properties exhibits relatively low volatility with skewness of 1.27 and kurtosis of 2.79. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Brookfield Office's preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Brookfield Office's preferred stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Brookfield Office Demand TrendCheck current 90 days Brookfield Office correlation with market (Dow Jones Industrial)Brookfield Beta |
Brookfield standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 1.01 |
It is essential to understand the difference between upside risk (as represented by Brookfield Office's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Brookfield Office's daily returns or price. Since the actual investment returns on holding a position in brookfield preferred stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Brookfield Office.
Brookfield Office Preferred Stock Volatility Analysis
Volatility refers to the frequency at which Brookfield Office preferred stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Brookfield Office's price changes. Investors will then calculate the volatility of Brookfield Office's preferred stock to predict their future moves. A preferred stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A preferred stock with relatively stable price changes has low volatility. A highly volatile preferred stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Brookfield Office's volatility:
Historical Volatility
This type of preferred stock volatility measures Brookfield Office's fluctuations based on previous trends. It's commonly used to predict Brookfield Office's future behavior based on its past. However, it cannot conclusively determine the future direction of the preferred stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Brookfield Office's current market price. This means that the preferred stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Brookfield Office's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Brookfield Office Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Brookfield Office Projected Return Density Against Market
Assuming the 90 days trading horizon Brookfield Office has a beta of 0.0846 suggesting as returns on the market go up, Brookfield Office average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Brookfield Office Properties will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Brookfield Office or Capital Markets sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Brookfield Office's price will be affected by overall preferred stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Brookfield preferred stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Brookfield Office Properties has an alpha of 0.3334, implying that it can generate a 0.33 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Brookfield Office Price Volatility?
Several factors can influence a preferred stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Brookfield Office Preferred Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Brookfield Office is 295.01. The daily returns are distributed with a variance of 1.02 and standard deviation of 1.01. The mean deviation of Brookfield Office Properties is currently at 0.7. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.33 | |
β | Beta against Dow Jones | 0.08 | |
σ | Overall volatility | 1.01 | |
Ir | Information ratio | 0.22 |
Brookfield Office Preferred Stock Return Volatility
Brookfield Office historical daily return volatility represents how much of Brookfield Office preferred stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 1.01% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7328% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Brookfield Office Volatility
Volatility is a rate at which the price of Brookfield Office or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Brookfield Office may increase or decrease. In other words, similar to Brookfield's beta indicator, it measures the risk of Brookfield Office and helps estimate the fluctuations that may happen in a short period of time. So if prices of Brookfield Office fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.3 ways to utilize Brookfield Office's volatility to invest better
Higher Brookfield Office's preferred stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Brookfield Office preferred stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Brookfield Office preferred stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Brookfield Office investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Brookfield Office's preferred stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Brookfield Office's preferred stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Brookfield Office Investment Opportunity
Brookfield Office Properties has a volatility of 1.01 and is 1.38 times more volatile than Dow Jones Industrial. 8 percent of all equities and portfolios are less risky than Brookfield Office. You can use Brookfield Office Properties to enhance the returns of your portfolios. The preferred stock experiences a normal upward fluctuation. Check odds of Brookfield Office to be traded at C$18.62 in 90 days.Significant diversification
The correlation between Brookfield Office Properties and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Office Properties and DJI in the same portfolio, assuming nothing else is changed.
Brookfield Office Additional Risk Indicators
The analysis of Brookfield Office's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Brookfield Office's investment and either accepting that risk or mitigating it. Along with some common measures of Brookfield Office preferred stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.245 | |||
| Market Risk Adjusted Performance | 4.07 | |||
| Mean Deviation | 0.7404 | |||
| Downside Deviation | 0.7579 | |||
| Coefficient Of Variation | 298.61 | |||
| Standard Deviation | 1.05 | |||
| Variance | 1.11 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential preferred stocks, we recommend comparing similar preferred stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Brookfield Office Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Brookfield Office as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Brookfield Office's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Brookfield Office's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Brookfield Office Properties.
Complementary Tools for Brookfield Preferred Stock analysis
When running Brookfield Office's price analysis, check to measure Brookfield Office's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Brookfield Office is operating at the current time. Most of Brookfield Office's value examination focuses on studying past and present price action to predict the probability of Brookfield Office's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brookfield Office's price. Additionally, you may evaluate how the addition of Brookfield Office to your portfolios can decrease your overall portfolio volatility.
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