Correlation Between State Street and Brunswick
Can any of the company-specific risk be diversified away by investing in both State Street 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 State Street and Brunswick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Corp and Brunswick, you can compare the effects of market volatilities on State Street 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 State Street with a short position of Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Brunswick.
Diversification Opportunities for State Street and Brunswick
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Brunswick is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding State Street Corp and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick and State Street 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 State Street Corp 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 State Street i.e., State Street and Brunswick go up and down completely randomly.
Pair Corralation between State Street and Brunswick
Considering the 90-day investment horizon State Street Corp is expected to generate 0.65 times more return on investment than Brunswick. However, State Street Corp is 1.53 times less risky than Brunswick. It trades about -0.01 of its potential returns per unit of risk. Brunswick is currently generating about -0.03 per unit of risk. If you would invest 7,364 in State Street Corp on January 20, 2024 and sell it today you would lose (60.00) from holding State Street Corp or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Street Corp vs. Brunswick
Performance |
| Timeline |
| State Street Corp |
| Brunswick |
State Street and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Brunswick
The main advantage of trading using opposite State Street and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street 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.| State Street vs. Northern Trust | State Street vs. Franklin Resources | State Street vs. Invesco Plc | State Street vs. T Rowe Price |
| Brunswick vs. Thor Industries | Brunswick vs. EZGO Technologies | Brunswick vs. LCI Industries | Brunswick vs. Winnebago 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| 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 |