Correlation Between Winnebago Industries and Clarus Corp
Can any of the company-specific risk be diversified away by investing in both Winnebago Industries and Clarus 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 Winnebago Industries and Clarus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winnebago Industries and Clarus Corp, you can compare the effects of market volatilities on Winnebago Industries and Clarus 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 Winnebago Industries with a short position of Clarus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winnebago Industries and Clarus Corp.
Diversification Opportunities for Winnebago Industries and Clarus Corp
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Winnebago and Clarus is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Winnebago Industries and Clarus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clarus Corp and Winnebago 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 Winnebago Industries are associated (or correlated) with Clarus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clarus Corp has no effect on the direction of Winnebago Industries i.e., Winnebago Industries and Clarus Corp go up and down completely randomly.
Pair Corralation between Winnebago Industries and Clarus Corp
Considering the 90-day investment horizon Winnebago Industries is expected to generate 0.92 times more return on investment than Clarus Corp. However, Winnebago Industries is 1.08 times less risky than Clarus Corp. It trades about 0.08 of its potential returns per unit of risk. Clarus Corp is currently generating about 0.06 per unit of risk. If you would invest 5,621 in Winnebago Industries on September 3, 2024 and sell it today you would earn a total of 233.00 from holding Winnebago Industries or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winnebago Industries vs. Clarus Corp
Performance |
| Timeline |
| Winnebago Industries |
| Clarus Corp |
Winnebago Industries and Clarus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winnebago Industries and Clarus Corp
The main advantage of trading using opposite Winnebago Industries and Clarus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winnebago Industries position performs unexpectedly, Clarus 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 Clarus Corp will offset losses from the drop in Clarus Corp's long position.| Winnebago Industries vs. LCI Industries | Winnebago Industries vs. Brunswick | Winnebago Industries vs. Polaris Industries | Winnebago Industries vs. Marine Products |
| Clarus Corp vs. Vista Outdoor | Clarus Corp vs. Johnson Outdoors | Clarus Corp vs. Escalade Incorporated | Clarus Corp vs. JAKKS Pacific |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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