Correlation Between Churchill Capital and Brunswick
Can any of the company-specific risk be diversified away by investing in both Churchill Capital and Brunswick 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 Churchill Capital and Brunswick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Churchill Capital Corp and Brunswick, you can compare the effects of market volatilities on Churchill Capital and Brunswick 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 Churchill Capital with a short position of Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Churchill Capital and Brunswick.
Diversification Opportunities for Churchill Capital and Brunswick
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Churchill and Brunswick is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Churchill Capital Corp and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick and Churchill Capital 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 Churchill Capital Corp are associated (or correlated) with Brunswick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick has no effect on the direction of Churchill Capital i.e., Churchill Capital and Brunswick go up and down completely randomly.
Pair Corralation between Churchill Capital and Brunswick
Given the investment horizon of 90 days Churchill Capital Corp is expected to generate 0.12 times more return on investment than Brunswick. However, Churchill Capital Corp is 8.33 times less risky than Brunswick. It trades about 0.52 of its potential returns per unit of risk. Brunswick is currently generating about 0.04 per unit of risk. If you would invest 1,004 in Churchill Capital Corp on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Churchill Capital Corp or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Churchill Capital Corp vs. Brunswick
Performance |
| Timeline |
| Churchill Capital Corp |
| Brunswick |
Churchill Capital and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Churchill Capital and Brunswick
The main advantage of trading using opposite Churchill Capital and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Churchill Capital position performs unexpectedly, Brunswick 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 Brunswick will offset losses from the drop in Brunswick's long position.| Churchill Capital vs. Voyager Acquisition Corp | Churchill Capital vs. YHN Acquisition I | Churchill Capital vs. CO2 Energy Transition | Churchill Capital vs. Vine Hill Capital |
| Brunswick vs. LCI Industries | Brunswick vs. MCBC Holdings | Brunswick vs. Winnebago Industries | Brunswick vs. Thor 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |