Correlation Between Brunswick and APACHE
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By analyzing existing cross correlation between Brunswick and APACHE P 51, you can compare the effects of market volatilities on Brunswick and APACHE 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 APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick and APACHE.
Diversification Opportunities for Brunswick and APACHE
Very good diversification
The 3 months correlation between Brunswick and APACHE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick and APACHE P 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 51 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 APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 51 has no effect on the direction of Brunswick i.e., Brunswick and APACHE go up and down completely randomly.
Pair Corralation between Brunswick and APACHE
Allowing for the 90-day total investment horizon Brunswick is expected to generate 2.15 times more return on investment than APACHE. However, Brunswick is 2.15 times more volatile than APACHE P 51. It trades about 0.02 of its potential returns per unit of risk. APACHE P 51 is currently generating about 0.0 per unit of risk. If you would invest 7,133 in Brunswick on September 4, 2024 and sell it today you would earn a total of 818.00 from holding Brunswick or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Brunswick vs. APACHE P 51
Performance |
| Timeline |
| Brunswick |
| APACHE P 51 |
Brunswick and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick and APACHE
The main advantage of trading using opposite Brunswick and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE's long position.| Brunswick vs. Thor Industries | Brunswick vs. BRP Inc | Brunswick vs. EZGO Technologies | Brunswick vs. Polaris Industries |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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