Correlation Between Winnebago Industries and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both Winnebago Industries and OFFICE DEPOT 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 OFFICE DEPOT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winnebago Industries and OFFICE DEPOT, you can compare the effects of market volatilities on Winnebago Industries and OFFICE DEPOT 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 OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winnebago Industries and OFFICE DEPOT.
Diversification Opportunities for Winnebago Industries and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Winnebago and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Winnebago Industries and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT 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 OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of Winnebago Industries i.e., Winnebago Industries and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between Winnebago Industries and OFFICE DEPOT
If you would invest 4,585 in Winnebago Industries on November 1, 2024 and sell it today you would earn a total of 55.00 from holding Winnebago Industries or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Winnebago Industries vs. OFFICE DEPOT
Performance |
| Timeline |
| Winnebago Industries |
| OFFICE DEPOT |
Winnebago Industries and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winnebago Industries and OFFICE DEPOT
The main advantage of trading using opposite Winnebago Industries and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winnebago Industries position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| Winnebago Industries vs. PLAYMATES TOYS | Winnebago Industries vs. 24SEVENOFFICE GROUP AB | Winnebago Industries vs. Playa Hotels Resorts | Winnebago Industries vs. TRAVEL LEISURE DL 01 |
| OFFICE DEPOT vs. Fuji Media Holdings | OFFICE DEPOT vs. CLOVER HEALTH INV | OFFICE DEPOT vs. CVS Health | OFFICE DEPOT vs. National Health Investors |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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