Correlation Between Apple and Brunswick

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Apple and Brunswick 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 Apple and Brunswick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Brunswick, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Brunswick.

Diversification Opportunities for Apple and Brunswick

-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between Apple and Brunswick is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick and Apple 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 Apple Inc 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 Apple i.e., Apple and Brunswick go up and down completely randomly.

Pair Corralation between Apple and Brunswick

Given the investment horizon of 90 days Apple Inc is expected to under-perform the Brunswick. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.19 times less risky than Brunswick. The stock trades about -0.16 of its potential returns per unit of risk. The Brunswick is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  8,649  in Brunswick on December 30, 2023 and sell it today you would earn a total of  1,003  from holding Brunswick or generate 11.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  Brunswick

 Performance 
       Timeline  
Apple Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
Brunswick 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Very Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Brunswick are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Brunswick is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Apple and Brunswick Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apple and Brunswick

The main advantage of trading using opposite Apple and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Brunswick 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 Brunswick will offset losses from the drop in Brunswick's long position.
The idea behind Apple Inc and Brunswick pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Bonds Directory
Find actively traded corporate debentures issued by US companies
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges