Correlation Between Marie Brizard and American Eagle
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and American Eagle 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 American Eagle 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 American Eagle Outfitters, you can compare the effects of market volatilities on Marie Brizard and American Eagle 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 American Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and American Eagle.
Diversification Opportunities for Marie Brizard and American Eagle
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marie and American is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and American Eagle Outfitters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Eagle Outfitters 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 American Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Eagle Outfitters has no effect on the direction of Marie Brizard i.e., Marie Brizard and American Eagle go up and down completely randomly.
Pair Corralation between Marie Brizard and American Eagle
Assuming the 90 days trading horizon Marie Brizard Wine is expected to under-perform the American Eagle. But the stock apears to be less risky and, when comparing its historical volatility, Marie Brizard Wine is 1.39 times less risky than American Eagle. The stock trades about -0.12 of its potential returns per unit of risk. The American Eagle Outfitters is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,800 in American Eagle Outfitters on September 1, 2024 and sell it today you would lose (50.00) from holding American Eagle Outfitters or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marie Brizard Wine vs. American Eagle Outfitters
Performance |
| Timeline |
| Marie Brizard Wine |
| American Eagle Outfitters |
Marie Brizard and American Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and American Eagle
The main advantage of trading using opposite Marie Brizard and American Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, American Eagle 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 American Eagle will offset losses from the drop in American Eagle's long position.| Marie Brizard vs. SIVERS SEMICONDUCTORS AB | Marie Brizard vs. Darden Restaurants | Marie Brizard vs. Reliance Steel Aluminum | Marie Brizard vs. Q2M Managementberatung AG |
| American Eagle vs. LPKF Laser Electronics | American Eagle vs. AOI Electronics Co | American Eagle vs. CITY OFFICE REIT | American Eagle vs. ARROW ELECTRONICS |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |