Correlation Between Aristocrat Group and Remy Cointreau
Can any of the company-specific risk be diversified away by investing in both Aristocrat Group and Remy Cointreau 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 Aristocrat Group and Remy Cointreau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aristocrat Group Corp and Remy Cointreau SA, you can compare the effects of market volatilities on Aristocrat Group and Remy Cointreau 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 Aristocrat Group with a short position of Remy Cointreau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristocrat Group and Remy Cointreau.
Diversification Opportunities for Aristocrat Group and Remy Cointreau
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aristocrat and Remy is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Aristocrat Group Corp and Remy Cointreau SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remy Cointreau SA and Aristocrat Group 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 Aristocrat Group Corp are associated (or correlated) with Remy Cointreau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remy Cointreau SA has no effect on the direction of Aristocrat Group i.e., Aristocrat Group and Remy Cointreau go up and down completely randomly.
Pair Corralation between Aristocrat Group and Remy Cointreau
Given the investment horizon of 90 days Aristocrat Group Corp is expected to generate 19.71 times more return on investment than Remy Cointreau. However, Aristocrat Group is 19.71 times more volatile than Remy Cointreau SA. It trades about 0.2 of its potential returns per unit of risk. Remy Cointreau SA is currently generating about -0.23 per unit of risk. If you would invest 1.60 in Aristocrat Group Corp on December 31, 2024 and sell it today you would earn a total of 4.40 from holding Aristocrat Group Corp or generate 275.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aristocrat Group Corp vs. Remy Cointreau SA
Performance |
| Timeline |
| Aristocrat Group Corp |
| Remy Cointreau SA |
Aristocrat Group and Remy Cointreau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aristocrat Group and Remy Cointreau
The main advantage of trading using opposite Aristocrat Group and Remy Cointreau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristocrat Group position performs unexpectedly, Remy Cointreau 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 Remy Cointreau will offset losses from the drop in Remy Cointreau's long position.| Aristocrat Group vs. Iconic Brands | Aristocrat Group vs. Becle SA de | Aristocrat Group vs. Naked Wines plc | Aristocrat Group vs. Willamette Valley Vineyards |
| Remy Cointreau vs. Diageo PLC ADR | Remy Cointreau vs. Pernod Ricard SA | Remy Cointreau vs. Treasury Wine Estates | Remy Cointreau vs. MGP Ingredients |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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