Correlation Between Brunswick and SeaCo
Can any of the company-specific risk be diversified away by investing in both Brunswick and SeaCo 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 SeaCo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick and SeaCo, you can compare the effects of market volatilities on Brunswick and SeaCo 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 SeaCo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick and SeaCo.
Diversification Opportunities for Brunswick and SeaCo
Pay attention - limited upside
The 3 months correlation between Brunswick and SeaCo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick and SeaCo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeaCo 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 SeaCo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeaCo has no effect on the direction of Brunswick i.e., Brunswick and SeaCo go up and down completely randomly.
Pair Corralation between Brunswick and SeaCo
If you would invest 8,162 in Brunswick on August 27, 2024 and sell it today you would earn a total of 75.00 from holding Brunswick or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brunswick vs. SeaCo
Performance |
| Timeline |
| Brunswick |
| SeaCo |
Brunswick and SeaCo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick and SeaCo
The main advantage of trading using opposite Brunswick and SeaCo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick position performs unexpectedly, SeaCo 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 SeaCo will offset losses from the drop in SeaCo's long position.| Brunswick vs. MCBC Holdings | Brunswick vs. Winnebago Industries | Brunswick vs. LCI Industries | Brunswick vs. Thor Industries |
| SeaCo vs. Brunswick | SeaCo vs. American Axle Manufacturing | SeaCo vs. Magna International | SeaCo vs. Maanshan Iron Steel |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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