Correlation Between Winnebago Industries and PLAYMATES TOYS
Can any of the company-specific risk be diversified away by investing in both Winnebago Industries and PLAYMATES TOYS 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 PLAYMATES TOYS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winnebago Industries and PLAYMATES TOYS, you can compare the effects of market volatilities on Winnebago Industries and PLAYMATES TOYS 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 PLAYMATES TOYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winnebago Industries and PLAYMATES TOYS.
Diversification Opportunities for Winnebago Industries and PLAYMATES TOYS
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Winnebago and PLAYMATES is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Winnebago Industries and PLAYMATES TOYS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYMATES TOYS 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 PLAYMATES TOYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYMATES TOYS has no effect on the direction of Winnebago Industries i.e., Winnebago Industries and PLAYMATES TOYS go up and down completely randomly.
Pair Corralation between Winnebago Industries and PLAYMATES TOYS
Assuming the 90 days horizon Winnebago Industries is expected to generate 0.51 times more return on investment than PLAYMATES TOYS. However, Winnebago Industries is 1.96 times less risky than PLAYMATES TOYS. It trades about 0.0 of its potential returns per unit of risk. PLAYMATES TOYS is currently generating about -0.01 per unit of risk. If you would invest 4,685 in Winnebago Industries on November 8, 2024 and sell it today you would lose (25.00) from holding Winnebago Industries or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Winnebago Industries vs. PLAYMATES TOYS
Performance |
| Timeline |
| Winnebago Industries |
| PLAYMATES TOYS |
Winnebago Industries and PLAYMATES TOYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winnebago Industries and PLAYMATES TOYS
The main advantage of trading using opposite Winnebago Industries and PLAYMATES TOYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winnebago Industries position performs unexpectedly, PLAYMATES TOYS 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 PLAYMATES TOYS will offset losses from the drop in PLAYMATES TOYS's long position.| Winnebago Industries vs. Harley Davidson | Winnebago Industries vs. BRP Inc | Winnebago Industries vs. Polaris | Winnebago Industries vs. Fox Factory Holding |
| PLAYMATES TOYS vs. Sumitomo Mitsui Construction | PLAYMATES TOYS vs. AEON METALS LTD | PLAYMATES TOYS vs. ADRIATIC METALS LS 013355 | PLAYMATES TOYS vs. Titan Machinery |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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