Correlation Between Virco Manufacturing and Brunswick Corp

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

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

Diversification Opportunities for Virco Manufacturing and Brunswick Corp

-0.59

Correlation Coefficient

Virco Manufacturing  Brunswick Corp

Excellent diversification

The 3 months correlation between Virco and Brunswick is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Virco Manufacturing and Brunswick Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick Corp and Virco Manufacturing 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 Virco Manufacturing 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 Virco Manufacturing i.e., Virco Manufacturing and Brunswick Corp go up and down completely randomly.

Pair Corralation between Virco Manufacturing and Brunswick Corp

Given the investment horizon of 90 days Virco Manufacturing is expected to under-perform the Brunswick Corp. In addition to that, Virco Manufacturing is 4.98 times more volatile than Brunswick Corp. It trades about -0.02 of its total potential returns per unit of risk. Brunswick Corp is currently generating about 0.33 per unit of volatility. If you would invest  2,205  in Brunswick Corp on May 6, 2025 and sell it today you would earn a total of  265.00  from holding Brunswick Corp or generate 12.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Virco Manufacturing  vs.  Brunswick Corp

Virco Manufacturing

Risk-Adjusted Performance

Very Weak

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

Brunswick Corp

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Brunswick Corp are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Brunswick Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Virco Manufacturing and Brunswick Corp

The main advantage of trading using opposite Virco Manufacturing and Brunswick Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virco Manufacturing 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 Virco Manufacturing 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 Anywhere module to track or share privately all of your investments from the convenience of any device.