Correlation Between Brunswick and Nebius Group
Can any of the company-specific risk be diversified away by investing in both Brunswick and Nebius Group 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 Nebius Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick and Nebius Group NV, you can compare the effects of market volatilities on Brunswick and Nebius Group 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 Nebius Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick and Nebius Group.
Diversification Opportunities for Brunswick and Nebius Group
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brunswick and Nebius is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick and Nebius Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebius Group NV 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 Nebius Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebius Group NV has no effect on the direction of Brunswick i.e., Brunswick and Nebius Group go up and down completely randomly.
Pair Corralation between Brunswick and Nebius Group
Allowing for the 90-day total investment horizon Brunswick is expected to under-perform the Nebius Group. But the stock apears to be less risky and, when comparing its historical volatility, Brunswick is 4.1 times less risky than Nebius Group. The stock trades about -0.18 of its potential returns per unit of risk. The Nebius Group NV is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 1,857 in Nebius Group NV on September 14, 2024 and sell it today you would earn a total of 1,276 from holding Nebius Group NV or generate 68.71% 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. Nebius Group NV
Performance |
| Timeline |
| Brunswick |
| Nebius Group NV |
Brunswick and Nebius Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick and Nebius Group
The main advantage of trading using opposite Brunswick and Nebius Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick position performs unexpectedly, Nebius Group 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 Nebius Group will offset losses from the drop in Nebius Group's long position.| Brunswick vs. Clarus Corp | Brunswick vs. Johnson Outdoors | Brunswick vs. JAKKS Pacific | Brunswick vs. OneSpaWorld Holdings |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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