Pair Correlation Between DOW and Brunswick

This module allows you to analyze existing cross correlation between DOW and Brunswick Corporation. You can compare the effects of market volatilities on DOW and Brunswick 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 DOW with a short position of Brunswick. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Brunswick.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   Brunswick Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the Brunswick. But the index apears to be less risky and, when comparing its historical volatility, DOW is 1.21 times less risky than Brunswick. The index trades about -0.1 of its potential returns per unit of risk. The Brunswick Corporation is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  5,993  in Brunswick Corporation on January 25, 2018 and sell it today you would lose (91.00)  from holding Brunswick Corporation or give up 1.52% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Brunswick
0.52

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Brunswick Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Brunswick and DOW 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 DOW are associated (or correlated) with Brunswick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick has no effect on the direction of DOW i.e. DOW and Brunswick go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns