Correlation Between Marie Brizard and Federal Agricultural
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and Federal Agricultural 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 Federal Agricultural 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 Federal Agricultural Mortgage, you can compare the effects of market volatilities on Marie Brizard and Federal Agricultural 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 Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and Federal Agricultural.
Diversification Opportunities for Marie Brizard and Federal Agricultural
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marie and Federal is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Federal Agricultural Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Agricultural 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 Federal Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Agricultural has no effect on the direction of Marie Brizard i.e., Marie Brizard and Federal Agricultural go up and down completely randomly.
Pair Corralation between Marie Brizard and Federal Agricultural
Assuming the 90 days trading horizon Marie Brizard Wine is expected to generate 0.71 times more return on investment than Federal Agricultural. However, Marie Brizard Wine is 1.4 times less risky than Federal Agricultural. It trades about -0.09 of its potential returns per unit of risk. Federal Agricultural Mortgage is currently generating about -0.38 per unit of risk. If you would invest 388.00 in Marie Brizard Wine on October 16, 2024 and sell it today you would lose (6.00) from holding Marie Brizard Wine or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Marie Brizard Wine vs. Federal Agricultural Mortgage
Performance |
| Timeline |
| Marie Brizard Wine |
| Federal Agricultural |
Marie Brizard and Federal Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and Federal Agricultural
The main advantage of trading using opposite Marie Brizard and Federal Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, Federal Agricultural 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 Federal Agricultural will offset losses from the drop in Federal Agricultural's long position.| Marie Brizard vs. MARKET VECTR RETAIL | Marie Brizard vs. Flowers Foods | Marie Brizard vs. INDOFOOD AGRI RES | Marie Brizard vs. Indutrade AB |
| Federal Agricultural vs. SIDETRADE EO 1 | Federal Agricultural vs. Indutrade AB | Federal Agricultural vs. SLR Investment Corp | Federal Agricultural vs. Chuangs China Investments |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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