Correlation Between Brunswick and Gaxosai
Can any of the company-specific risk be diversified away by investing in both Brunswick and Gaxosai 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 Brunswick and Gaxosai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick and Gaxosai, you can compare the effects of market volatilities on Brunswick and Gaxosai 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 Brunswick with a short position of Gaxosai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick and Gaxosai.
Diversification Opportunities for Brunswick and Gaxosai
Excellent diversification
The 3 months correlation between Brunswick and Gaxosai is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick and Gaxosai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaxosai and Brunswick 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 Brunswick are associated (or correlated) with Gaxosai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaxosai has no effect on the direction of Brunswick i.e., Brunswick and Gaxosai go up and down completely randomly.
Pair Corralation between Brunswick and Gaxosai
Allowing for the 90-day total investment horizon Brunswick is expected to under-perform the Gaxosai. But the stock apears to be less risky and, when comparing its historical volatility, Brunswick is 12.17 times less risky than Gaxosai. The stock trades about -0.21 of its potential returns per unit of risk. The Gaxosai is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Gaxosai on September 19, 2024 and sell it today you would earn a total of 249.00 from holding Gaxosai or generate 216.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brunswick vs. Gaxosai
Performance |
| Timeline |
| Brunswick |
| Gaxosai |
Brunswick and Gaxosai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick and Gaxosai
The main advantage of trading using opposite Brunswick and Gaxosai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick position performs unexpectedly, Gaxosai 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 Gaxosai will offset losses from the drop in Gaxosai's long position.| Brunswick vs. Clarus Corp | Brunswick vs. OneSpaWorld Holdings | Brunswick vs. Leatt Corp | Brunswick vs. Six Flags Entertainment |
| Gaxosai vs. Hudson Pacific Properties | Gaxosai vs. Brunswick | Gaxosai vs. Playtika Holding Corp | Gaxosai vs. Marine Products |
Check out your portfolio center.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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |