Correlation Between 24SEVENOFFICE GROUP and Winnebago Industries

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Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP and Winnebago Industries 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 24SEVENOFFICE GROUP and Winnebago Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and Winnebago Industries, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP and Winnebago Industries 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 24SEVENOFFICE GROUP with a short position of Winnebago Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and Winnebago Industries.

Diversification Opportunities for 24SEVENOFFICE GROUP and Winnebago Industries

24SEVENOFFICEWinnebagoDiversified Away24SEVENOFFICEWinnebagoDiversified Away100%
0.48
  Correlation Coefficient

Very weak diversification

The 3 months correlation between 24SEVENOFFICE and Winnebago is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB and Winnebago Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winnebago Industries and 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB are associated (or correlated) with Winnebago Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winnebago Industries has no effect on the direction of 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and Winnebago Industries go up and down completely randomly.

Pair Corralation between 24SEVENOFFICE GROUP and Winnebago Industries

Assuming the 90 days horizon 24SEVENOFFICE GROUP AB is expected to generate 0.56 times more return on investment than Winnebago Industries. However, 24SEVENOFFICE GROUP AB is 1.78 times less risky than Winnebago Industries. It trades about 0.18 of its potential returns per unit of risk. Winnebago Industries is currently generating about -0.12 per unit of risk. If you would invest  161.00  in 24SEVENOFFICE GROUP AB on November 21, 2024 and sell it today you would earn a total of  8.00  from holding 24SEVENOFFICE GROUP AB or generate 4.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

24SEVENOFFICE GROUP AB  vs.  Winnebago Industries

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -25-20-15-10-50510
JavaScript chart by amCharts 3.21.15719 WI1
       Timeline  
24SEVENOFFICE GROUP 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days 24SEVENOFFICE GROUP AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.61.71.81.922.12.22.3
Winnebago Industries 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Winnebago Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb44464850525456

24SEVENOFFICE GROUP and Winnebago Industries Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.93-4.44-2.95-1.46-0.02481.362.764.175.576.98 0.0300.0350.0400.0450.0500.0550.060
JavaScript chart by amCharts 3.21.15719 WI1
       Returns  

Pair Trading with 24SEVENOFFICE GROUP and Winnebago Industries

The main advantage of trading using opposite 24SEVENOFFICE GROUP and Winnebago Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP position performs unexpectedly, Winnebago Industries 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 Winnebago Industries will offset losses from the drop in Winnebago Industries' long position.
The idea behind 24SEVENOFFICE GROUP AB and Winnebago Industries 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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