Correlation Between Artois Nom and Laurent Perrier
Can any of the company-specific risk be diversified away by investing in both Artois Nom and Laurent Perrier 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 Artois Nom and Laurent Perrier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artois Nom and Laurent Perrier, you can compare the effects of market volatilities on Artois Nom and Laurent Perrier 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 Artois Nom with a short position of Laurent Perrier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artois Nom and Laurent Perrier.
Diversification Opportunities for Artois Nom and Laurent Perrier
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Artois and Laurent is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Artois Nom and Laurent Perrier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laurent Perrier and Artois Nom 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 Artois Nom are associated (or correlated) with Laurent Perrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laurent Perrier has no effect on the direction of Artois Nom i.e., Artois Nom and Laurent Perrier go up and down completely randomly.
Pair Corralation between Artois Nom and Laurent Perrier
Assuming the 90 days trading horizon Artois Nom is expected to generate 0.8 times more return on investment than Laurent Perrier. However, Artois Nom is 1.25 times less risky than Laurent Perrier. It trades about -0.04 of its potential returns per unit of risk. Laurent Perrier is currently generating about -0.13 per unit of risk. If you would invest 955,000 in Artois Nom on September 1, 2024 and sell it today you would lose (5,000) from holding Artois Nom or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artois Nom vs. Laurent Perrier
Performance |
| Timeline |
| Artois Nom |
| Laurent Perrier |
Artois Nom and Laurent Perrier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artois Nom and Laurent Perrier
The main advantage of trading using opposite Artois Nom and Laurent Perrier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artois Nom position performs unexpectedly, Laurent Perrier 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 Laurent Perrier will offset losses from the drop in Laurent Perrier's long position.| Artois Nom vs. Compagnie du Cambodge | Artois Nom vs. Burelle SA | Artois Nom vs. Compagnie de lOdet | Artois Nom vs. Altareit |
| Laurent Perrier vs. Remy Cointreau | Laurent Perrier vs. Vranken Pommery Monopole Socit | Laurent Perrier vs. Interparfums SA | Laurent Perrier vs. Guerbet S A |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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