Correlation Between Manchester United and Brunswick
Can any of the company-specific risk be diversified away by investing in both Manchester United 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 Manchester United and Brunswick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manchester United and Brunswick, you can compare the effects of market volatilities on Manchester United 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 Manchester United with a short position of Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manchester United and Brunswick.
Diversification Opportunities for Manchester United and Brunswick
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Manchester and Brunswick is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Manchester United and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick and Manchester United 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 Manchester United 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 Manchester United i.e., Manchester United and Brunswick go up and down completely randomly.
Pair Corralation between Manchester United and Brunswick
Given the investment horizon of 90 days Manchester United is expected to generate 0.92 times more return on investment than Brunswick. However, Manchester United is 1.09 times less risky than Brunswick. It trades about 0.45 of its potential returns per unit of risk. Brunswick is currently generating about -0.23 per unit of risk. If you would invest 1,383 in Manchester United on January 26, 2024 and sell it today you would earn a total of 196.00 from holding Manchester United or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manchester United vs. Brunswick
Performance |
| Timeline |
| Manchester United |
| Brunswick |
Manchester United and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manchester United and Brunswick
The main advantage of trading using opposite Manchester United and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manchester United 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.| Manchester United vs. Roku Inc | Manchester United vs. Paramount Global Class | Manchester United vs. Warner Bros Discovery | Manchester United vs. Paramount Global Class |
| Brunswick vs. MCBC Holdings | Brunswick vs. Marine Products | Brunswick vs. Winnebago Industries | Brunswick vs. LCI Industries |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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