Correlation Between Eddy Smart and Brunswick Corp

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

By analyzing existing cross correlation between Eddy Smart Home and Brunswick Corp, you can compare the effects of market volatilities on Eddy Smart and Brunswick Corp 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 Eddy Smart with a short position of Brunswick Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eddy Smart and Brunswick Corp.

Diversification Opportunities for Eddy Smart and Brunswick Corp

0.0

Correlation Coefficient

Eddy Smart  Brunswick Corp

Pay attention - limited upside

The 3 months correlation between Eddy and Brunswick is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eddy Smart Home and Brunswick Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick Corp and Eddy Smart 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 Eddy Smart Home are associated (or correlated) with Brunswick Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick Corp has no effect on the direction of Eddy Smart i.e., Eddy Smart and Brunswick Corp go up and down completely randomly.

Pair Corralation between Eddy Smart and Brunswick Corp

If you would invest  100.00  in Eddy Smart Home on March 5, 2025 and sell it today you would earn a total of  0.00  from holding Eddy Smart Home or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Eddy Smart Home  vs.  Brunswick Corp

Eddy Smart Home

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eddy Smart Home has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Eddy Smart is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Brunswick Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brunswick Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Brunswick Corp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Eddy Smart and Brunswick Corp

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

The idea behind Eddy Smart Home and Brunswick Corp 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.