Correlation Between Under Armour and Brunswick
Can any of the company-specific risk be diversified away by investing in both Under Armour 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 Under Armour and Brunswick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Under Armour C and Brunswick, you can compare the effects of market volatilities on Under Armour 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 Under Armour with a short position of Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and Brunswick.
Diversification Opportunities for Under Armour and Brunswick
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Under and Brunswick is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick and Under Armour 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 Under Armour C 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 Under Armour i.e., Under Armour and Brunswick go up and down completely randomly.
Pair Corralation between Under Armour and Brunswick
Allowing for the 90-day total investment horizon Under Armour C is expected to generate 1.78 times more return on investment than Brunswick. However, Under Armour is 1.78 times more volatile than Brunswick. It trades about -0.26 of its potential returns per unit of risk. Brunswick is currently generating about -0.8 per unit of risk. If you would invest 891.00 in Under Armour C on September 25, 2024 and sell it today you would lose (133.00) from holding Under Armour C or give up 14.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Under Armour C vs. Brunswick
Performance |
| Timeline |
| Under Armour C |
| Brunswick |
Under Armour and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Under Armour and Brunswick
The main advantage of trading using opposite Under Armour and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour 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.| Under Armour vs. Amer Sports, | Under Armour vs. Brunswick | Under Armour vs. BRP Inc | Under Armour vs. Vision Marine Technologies |
| Brunswick vs. Amer Sports, | Brunswick vs. Ralph Lauren Corp | Brunswick vs. Under Armour C | Brunswick vs. Dogness International Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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