Correlation Between Marie Brizard and SEALED AIR
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and SEALED AIR 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 SEALED AIR 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 SEALED AIR , you can compare the effects of market volatilities on Marie Brizard and SEALED AIR 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 SEALED AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and SEALED AIR.
Diversification Opportunities for Marie Brizard and SEALED AIR
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marie and SEALED is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and SEALED AIR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALED AIR 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 SEALED AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEALED AIR has no effect on the direction of Marie Brizard i.e., Marie Brizard and SEALED AIR go up and down completely randomly.
Pair Corralation between Marie Brizard and SEALED AIR
Assuming the 90 days trading horizon Marie Brizard Wine is expected to generate 0.85 times more return on investment than SEALED AIR. However, Marie Brizard Wine is 1.17 times less risky than SEALED AIR. It trades about 0.09 of its potential returns per unit of risk. SEALED AIR is currently generating about 0.01 per unit of risk. If you would invest 219.00 in Marie Brizard Wine on September 2, 2024 and sell it today you would earn a total of 159.00 from holding Marie Brizard Wine or generate 72.6% 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. SEALED AIR
Performance |
| Timeline |
| Marie Brizard Wine |
| SEALED AIR |
Marie Brizard and SEALED AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and SEALED AIR
The main advantage of trading using opposite Marie Brizard and SEALED AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, SEALED AIR 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 SEALED AIR will offset losses from the drop in SEALED AIR'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 |
| SEALED AIR vs. CANON MARKETING JP | SEALED AIR vs. CARSALESCOM | SEALED AIR vs. Haverty Furniture Companies | SEALED AIR vs. NURAN WIRELESS INC |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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