Correlation Between BOEING and Brunswick
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By analyzing existing cross correlation between BOEING CO and Brunswick, you can compare the effects of market volatilities on BOEING 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 BOEING with a short position of Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOEING and Brunswick.
Diversification Opportunities for BOEING and Brunswick
Very good diversification
The 3 months correlation between BOEING and Brunswick is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding BOEING CO and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick and BOEING 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 BOEING CO 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 BOEING i.e., BOEING and Brunswick go up and down completely randomly.
Pair Corralation between BOEING and Brunswick
Assuming the 90 days trading horizon BOEING CO is expected to under-perform the Brunswick. But the bond apears to be less risky and, when comparing its historical volatility, BOEING CO is 5.27 times less risky than Brunswick. The bond trades about -0.13 of its potential returns per unit of risk. The Brunswick is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 8,162 in Brunswick on August 29, 2024 and sell it today you would lose (106.00) from holding Brunswick or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BOEING CO vs. Brunswick
Performance |
| Timeline |
| BOEING CO |
| Brunswick |
BOEING and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOEING and Brunswick
The main advantage of trading using opposite BOEING and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOEING 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.The idea behind BOEING CO and Brunswick pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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