Correlation Between Marie Brizard and Food Life
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and Food Life 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 Marie Brizard and Food Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marie Brizard Wine and Food Life Companies, you can compare the effects of market volatilities on Marie Brizard and Food Life 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 Marie Brizard with a short position of Food Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and Food Life.
Diversification Opportunities for Marie Brizard and Food Life
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marie and Food is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Food Life Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Food Life Companies and Marie Brizard 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 Marie Brizard Wine are associated (or correlated) with Food Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Food Life Companies has no effect on the direction of Marie Brizard i.e., Marie Brizard and Food Life go up and down completely randomly.
Pair Corralation between Marie Brizard and Food Life
Assuming the 90 days trading horizon Marie Brizard Wine is expected to under-perform the Food Life. But the stock apears to be less risky and, when comparing its historical volatility, Marie Brizard Wine is 2.52 times less risky than Food Life. The stock trades about -0.23 of its potential returns per unit of risk. The Food Life Companies is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,120 in Food Life Companies on December 1, 2024 and sell it today you would earn a total of 460.00 from holding Food Life Companies or generate 21.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Marie Brizard Wine vs. Food Life Companies
Performance |
| Timeline |
| Marie Brizard Wine |
| Food Life Companies |
Marie Brizard and Food Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and Food Life
The main advantage of trading using opposite Marie Brizard and Food Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, Food Life 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 Food Life will offset losses from the drop in Food Life's long position.| Marie Brizard vs. AUST AGRICULTURAL | Marie Brizard vs. Titan Machinery | Marie Brizard vs. Tradegate AG Wertpapierhandelsbank | Marie Brizard vs. Australian Agricultural |
| Food Life vs. Semiconductor Manufacturing International | Food Life vs. CanSino Biologics | Food Life vs. High Liner Foods | Food Life vs. Nomad Foods |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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