Correlation Between Kontoor Brands and Brunswick
Can any of the company-specific risk be diversified away by investing in both Kontoor Brands 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 Kontoor Brands and Brunswick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kontoor Brands and Brunswick, you can compare the effects of market volatilities on Kontoor Brands 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 Kontoor Brands with a short position of Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and Brunswick.
Diversification Opportunities for Kontoor Brands and Brunswick
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kontoor and Brunswick is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick and Kontoor Brands 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 Kontoor Brands 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 Kontoor Brands i.e., Kontoor Brands and Brunswick go up and down completely randomly.
Pair Corralation between Kontoor Brands and Brunswick
Considering the 90-day investment horizon Kontoor Brands is expected to generate 1.1 times more return on investment than Brunswick. However, Kontoor Brands is 1.1 times more volatile than Brunswick. It trades about 0.07 of its potential returns per unit of risk. Brunswick is currently generating about 0.0 per unit of risk. If you would invest 4,819 in Kontoor Brands on February 28, 2024 and sell it today you would earn a total of 2,436 from holding Kontoor Brands or generate 50.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kontoor Brands vs. Brunswick
Performance |
Timeline |
Kontoor Brands |
Brunswick |
Kontoor Brands and Brunswick Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kontoor Brands and Brunswick
The main advantage of trading using opposite Kontoor Brands and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands 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.Kontoor Brands vs. Levi Strauss Co | Kontoor Brands vs. G III Apparel Group | Kontoor Brands vs. Hanesbrands | Kontoor Brands vs. PVH Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |