Correlation Between Marie Brizard and GigaMedia
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and GigaMedia 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 GigaMedia 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 GigaMedia, you can compare the effects of market volatilities on Marie Brizard and GigaMedia 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 GigaMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and GigaMedia.
Diversification Opportunities for Marie Brizard and GigaMedia
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marie and GigaMedia is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and GigaMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaMedia 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 GigaMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaMedia has no effect on the direction of Marie Brizard i.e., Marie Brizard and GigaMedia go up and down completely randomly.
Pair Corralation between Marie Brizard and GigaMedia
Assuming the 90 days trading horizon Marie Brizard is expected to generate 10.6 times less return on investment than GigaMedia. But when comparing it to its historical volatility, Marie Brizard Wine is 1.3 times less risky than GigaMedia. It trades about 0.02 of its potential returns per unit of risk. GigaMedia is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 124.00 in GigaMedia on August 31, 2024 and sell it today you would earn a total of 9.00 from holding GigaMedia or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marie Brizard Wine vs. GigaMedia
Performance |
| Timeline |
| Marie Brizard Wine |
| GigaMedia |
Marie Brizard and GigaMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and GigaMedia
The main advantage of trading using opposite Marie Brizard and GigaMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, GigaMedia 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 GigaMedia will offset losses from the drop in GigaMedia'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 |
| GigaMedia vs. JJ SNACK FOODS | GigaMedia vs. MOLSON RS BEVERAGE | GigaMedia vs. Astral Foods Limited | GigaMedia vs. Zijin Mining Group |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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