Correlation Between Brunswick and Naked Wines
Can any of the company-specific risk be diversified away by investing in both Brunswick and Naked Wines 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 Naked Wines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick and Naked Wines plc, you can compare the effects of market volatilities on Brunswick and Naked Wines 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 Naked Wines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick and Naked Wines.
Diversification Opportunities for Brunswick and Naked Wines
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brunswick and Naked is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick and Naked Wines plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naked Wines plc 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 Naked Wines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naked Wines plc has no effect on the direction of Brunswick i.e., Brunswick and Naked Wines go up and down completely randomly.
Pair Corralation between Brunswick and Naked Wines
If you would invest 271.00 in Naked Wines plc on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Naked Wines plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brunswick vs. Naked Wines plc
Performance |
| Timeline |
| Brunswick |
| Naked Wines plc |
Brunswick and Naked Wines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick and Naked Wines
The main advantage of trading using opposite Brunswick and Naked Wines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick position performs unexpectedly, Naked Wines 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 Naked Wines will offset losses from the drop in Naked Wines' long position.| Brunswick vs. MCBC Holdings | Brunswick vs. Marine Products | Brunswick vs. Winnebago Industries | Brunswick vs. LCI Industries |
| Naked Wines vs. Pernod Ricard SA | Naked Wines vs. Naked Wines plc | Naked Wines vs. Crimson Wine | Naked Wines vs. Brown Forman |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |