Correlation Between Brunswick and Funko
Can any of the company-specific risk be diversified away by investing in both Brunswick and Funko 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 Brunswick and Funko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick and Funko Inc, you can compare the effects of market volatilities on Brunswick and Funko 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 Brunswick with a short position of Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick and Funko.
Diversification Opportunities for Brunswick and Funko
Very good diversification
The 3 months correlation between Brunswick and Funko is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and Brunswick 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 Brunswick are associated (or correlated) with Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Brunswick i.e., Brunswick and Funko go up and down completely randomly.
Pair Corralation between Brunswick and Funko
Allowing for the 90-day total investment horizon Brunswick is expected to generate 0.46 times more return on investment than Funko. However, Brunswick is 2.17 times less risky than Funko. It trades about 0.02 of its potential returns per unit of risk. Funko Inc is currently generating about -0.02 per unit of risk. If you would invest 7,655 in Brunswick on January 26, 2024 and sell it today you would earn a total of 958.00 from holding Brunswick or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brunswick vs. Funko Inc
Performance |
| Timeline |
| Brunswick |
| Funko Inc |
Brunswick and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick and Funko
The main advantage of trading using opposite Brunswick and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.| Brunswick vs. MCBC Holdings | Brunswick vs. Marine Products | Brunswick vs. Winnebago Industries | Brunswick vs. LCI Industries |
| Funko vs. First Business Financial | Funko vs. Flexsteel Industries | Funko vs. Superior Uniform Group | Funko vs. Eastern Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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