Correlation Between Brunswick and INTNED

Can any of the company-specific risk be diversified away by investing in both Brunswick and INTNED 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 INTNED into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brunswick and INTNED 14 01 JUL 26, you can compare the effects of market volatilities on Brunswick and INTNED 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 INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick and INTNED.

Diversification Opportunities for Brunswick and INTNED

-0.04

Correlation Coefficient

Brunswick  INTNED

Good diversification

The 3 months correlation between Brunswick and INTNED is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick and INTNED 14 01 JUL 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 14 01 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 INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 14 01 has no effect on the direction of Brunswick i.e., Brunswick and INTNED go up and down completely randomly.

Pair Corralation between Brunswick and INTNED

Allowing for the 90-day total investment horizon Brunswick is expected to generate 1.68 times more return on investment than INTNED. However, Brunswick is 1.68 times more volatile than INTNED 14 01 JUL 26. It trades about -0.11 of its potential returns per unit of risk. INTNED 14 01 JUL 26 is currently generating about -0.22 per unit of risk. If you would invest  6,554  in Brunswick on December 24, 2024 and sell it today you would lose (891.00) from holding Brunswick or give up 13.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	50.82%
Values	Daily Returns

Brunswick  vs.  INTNED 14 01 JUL 26

Brunswick

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brunswick has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

INTNED 14 01

Risk-Adjusted Performance

Very Weak

Over the last 90 days INTNED 14 01 JUL 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for INTNED 14 01 JUL 26 investors.

Pair Trading with Brunswick and INTNED

The main advantage of trading using opposite Brunswick and INTNED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick position performs unexpectedly, INTNED 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 INTNED will offset losses from the drop in INTNED's long position.

The idea behind Brunswick and INTNED 14 01 JUL 26 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.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.