Correlation Between Corpay and Brunswick
Can any of the company-specific risk be diversified away by investing in both Corpay 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 Corpay and Brunswick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corpay Inc and Brunswick, you can compare the effects of market volatilities on Corpay 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 Corpay with a short position of Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corpay and Brunswick.
Diversification Opportunities for Corpay and Brunswick
Weak diversification
The 3 months correlation between Corpay and Brunswick is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Corpay Inc and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick and Corpay 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 Corpay Inc 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 Corpay i.e., Corpay and Brunswick go up and down completely randomly.
Pair Corralation between Corpay and Brunswick
Given the investment horizon of 90 days Corpay Inc is expected to generate 0.75 times more return on investment than Brunswick. However, Corpay Inc is 1.34 times less risky than Brunswick. It trades about 0.09 of its potential returns per unit of risk. Brunswick is currently generating about 0.01 per unit of risk. If you would invest 23,830 in Corpay Inc on August 31, 2024 and sell it today you would earn a total of 14,288 from holding Corpay Inc or generate 59.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corpay Inc vs. Brunswick
Performance |
| Timeline |
| Corpay Inc |
| Brunswick |
Corpay and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corpay and Brunswick
The main advantage of trading using opposite Corpay and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corpay 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.| Corpay vs. GEN Restaurant Group, | Corpay vs. Rave Restaurant Group | Corpay vs. The Wendys Co | Corpay vs. Kura Sushi USA |
| Brunswick vs. MCBC Holdings | Brunswick vs. Marine Products | Brunswick vs. Winnebago Industries | Brunswick vs. LCI 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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