Correlation Between Conrad Industries and Brunswick Corp
Can any of the company-specific risk be diversified away by investing in both Conrad Industries and Brunswick Corp 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 Conrad Industries and Brunswick Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conrad Industries and Brunswick Corp, you can compare the effects of market volatilities on Conrad Industries and Brunswick Corp 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 Conrad Industries with a short position of Brunswick Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conrad Industries and Brunswick Corp.
Diversification Opportunities for Conrad Industries and Brunswick Corp
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Conrad and Brunswick is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Conrad Industries and Brunswick Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick Corp and Conrad Industries 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 Conrad Industries are associated (or correlated) with Brunswick Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick Corp has no effect on the direction of Conrad Industries i.e., Conrad Industries and Brunswick Corp go up and down completely randomly.
Pair Corralation between Conrad Industries and Brunswick Corp
Given the investment horizon of 90 days Conrad Industries is expected to under-perform the Brunswick Corp. In addition to that, Conrad Industries is 3.33 times more volatile than Brunswick Corp. It trades about -0.06 of its total potential returns per unit of risk. Brunswick Corp is currently generating about 0.03 per unit of volatility. If you would invest 2,147 in Brunswick Corp on August 24, 2024 and sell it today you would earn a total of 278.00 from holding Brunswick Corp or generate 12.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.85% |
| Values | Daily Returns |
Conrad Industries vs. Brunswick Corp
Performance |
| Timeline |
| Conrad Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brunswick Corp |
Conrad Industries and Brunswick Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conrad Industries and Brunswick Corp
The main advantage of trading using opposite Conrad Industries and Brunswick Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conrad Industries position performs unexpectedly, Brunswick Corp 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 Corp will offset losses from the drop in Brunswick Corp's long position.| Conrad Industries vs. Thales SA ADR | Conrad Industries vs. MTU Aero Engines | Conrad Industries vs. Safran SA | Conrad Industries vs. Leonardo SpA ADR |
| Brunswick Corp vs. Waters | Brunswick Corp vs. HUTCHMED DRC | Brunswick Corp vs. SunLink Health Systems | Brunswick Corp vs. Nuvalent |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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