Correlation Between Marie Brizard and Grand City
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and Grand City 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 Grand City 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 Grand City Properties, you can compare the effects of market volatilities on Marie Brizard and Grand City 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 Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and Grand City.
Diversification Opportunities for Marie Brizard and Grand City
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marie and Grand is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties 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 Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of Marie Brizard i.e., Marie Brizard and Grand City go up and down completely randomly.
Pair Corralation between Marie Brizard and Grand City
Assuming the 90 days trading horizon Marie Brizard Wine is expected to under-perform the Grand City. In addition to that, Marie Brizard is 1.05 times more volatile than Grand City Properties. It trades about -0.29 of its total potential returns per unit of risk. Grand City Properties is currently generating about 0.06 per unit of volatility. If you would invest 1,065 in Grand City Properties on November 28, 2024 and sell it today you would earn a total of 20.00 from holding Grand City Properties or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Marie Brizard Wine vs. Grand City Properties
Performance |
| Timeline |
| Marie Brizard Wine |
| Grand City Properties |
Marie Brizard and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and Grand City
The main advantage of trading using opposite Marie Brizard and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.| Marie Brizard vs. Clearside Biomedical | Marie Brizard vs. NXP Semiconductors NV | Marie Brizard vs. Nordic Semiconductor ASA | Marie Brizard vs. Magnachip Semiconductor |
| Grand City vs. Yuexiu Transport Infrastructure | Grand City vs. DALATA HOTEL | Grand City vs. Ming Le Sports | Grand City vs. Hyatt Hotels |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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