Correlation Between Marie Brizard and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and Maple Leaf 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 Maple Leaf 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 Maple Leaf Foods, you can compare the effects of market volatilities on Marie Brizard and Maple Leaf 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 Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and Maple Leaf.
Diversification Opportunities for Marie Brizard and Maple Leaf
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marie and Maple is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of Marie Brizard i.e., Marie Brizard and Maple Leaf go up and down completely randomly.
Pair Corralation between Marie Brizard and Maple Leaf
Assuming the 90 days trading horizon Marie Brizard Wine is expected to generate 1.01 times more return on investment than Maple Leaf. However, Marie Brizard is 1.01 times more volatile than Maple Leaf Foods. It trades about 0.09 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about -0.01 per unit of risk. If you would invest 232.00 in Marie Brizard Wine on September 12, 2024 and sell it today you would earn a total of 151.00 from holding Marie Brizard Wine or generate 65.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Marie Brizard Wine vs. Maple Leaf Foods
Performance |
| Timeline |
| Marie Brizard Wine |
| Maple Leaf Foods |
Marie Brizard and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and Maple Leaf
The main advantage of trading using opposite Marie Brizard and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc |
| Maple Leaf vs. TOREX SEMICONDUCTOR LTD | Maple Leaf vs. Marie Brizard Wine | Maple Leaf vs. Magnachip Semiconductor | Maple Leaf vs. ECHO INVESTMENT ZY |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |