Correlation Between Winnebago Industries and Sturm Ruger
Can any of the company-specific risk be diversified away by investing in both Winnebago Industries and Sturm Ruger 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 Sturm Ruger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winnebago Industries and Sturm Ruger, you can compare the effects of market volatilities on Winnebago Industries and Sturm Ruger 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 Sturm Ruger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winnebago Industries and Sturm Ruger.
Diversification Opportunities for Winnebago Industries and Sturm Ruger
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Winnebago and Sturm is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Winnebago Industries and Sturm Ruger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sturm Ruger 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 Sturm Ruger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sturm Ruger has no effect on the direction of Winnebago Industries i.e., Winnebago Industries and Sturm Ruger go up and down completely randomly.
Pair Corralation between Winnebago Industries and Sturm Ruger
Considering the 90-day investment horizon Winnebago Industries is expected to generate 1.67 times more return on investment than Sturm Ruger. However, Winnebago Industries is 1.67 times more volatile than Sturm Ruger. It trades about 0.04 of its potential returns per unit of risk. Sturm Ruger is currently generating about -0.19 per unit of risk. If you would invest 5,750 in Winnebago Industries on August 30, 2024 and sell it today you would earn a total of 90.00 from holding Winnebago Industries or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winnebago Industries vs. Sturm Ruger
Performance |
| Timeline |
| Winnebago Industries |
| Sturm Ruger |
Winnebago Industries and Sturm Ruger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winnebago Industries and Sturm Ruger
The main advantage of trading using opposite Winnebago Industries and Sturm Ruger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winnebago Industries position performs unexpectedly, Sturm Ruger 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 Sturm Ruger will offset losses from the drop in Sturm Ruger's long position.| Winnebago Industries vs. LCI Industries | Winnebago Industries vs. Brunswick | Winnebago Industries vs. Polaris Industries | Winnebago Industries vs. Marine Products |
| Sturm Ruger vs. Ammo Inc | Sturm Ruger vs. Kratos Defense Security | Sturm Ruger vs. VSE Corporation | Sturm Ruger vs. Ammo Preferred |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |