Correlation Between Vision Marine and Winnebago Industries
Can any of the company-specific risk be diversified away by investing in both Vision Marine and Winnebago Industries 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 Vision Marine and Winnebago Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vision Marine Technologies and Winnebago Industries, you can compare the effects of market volatilities on Vision Marine and Winnebago Industries 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 Vision Marine with a short position of Winnebago Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vision Marine and Winnebago Industries.
Diversification Opportunities for Vision Marine and Winnebago Industries
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vision and Winnebago is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Vision Marine Technologies and Winnebago Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winnebago Industries and Vision Marine 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 Vision Marine Technologies are associated (or correlated) with Winnebago Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winnebago Industries has no effect on the direction of Vision Marine i.e., Vision Marine and Winnebago Industries go up and down completely randomly.
Pair Corralation between Vision Marine and Winnebago Industries
Given the investment horizon of 90 days Vision Marine Technologies is expected to under-perform the Winnebago Industries. In addition to that, Vision Marine is 1.94 times more volatile than Winnebago Industries. It trades about -0.33 of its total potential returns per unit of risk. Winnebago Industries is currently generating about 0.09 per unit of volatility. If you would invest 5,604 in Winnebago Industries on September 1, 2024 and sell it today you would earn a total of 250.00 from holding Winnebago Industries or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vision Marine Technologies vs. Winnebago Industries
Performance |
| Timeline |
| Vision Marine Techno |
| Winnebago Industries |
Vision Marine and Winnebago Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vision Marine and Winnebago Industries
The main advantage of trading using opposite Vision Marine and Winnebago Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vision Marine position performs unexpectedly, Winnebago Industries 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 Winnebago Industries will offset losses from the drop in Winnebago Industries' long position.| Vision Marine vs. EZGO Technologies | Vision Marine vs. Twin Vee Powercats | Vision Marine vs. Malibu Boats | Vision Marine vs. Polaris Industries |
| Winnebago Industries vs. LCI Industries | Winnebago Industries vs. Brunswick | Winnebago Industries vs. Polaris Industries | Winnebago Industries vs. Marine Products |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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