Correlation Between Marie Brizard and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics Co, you can compare the effects of market volatilities on Marie Brizard and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and Samsung Electronics.
Diversification Opportunities for Marie Brizard and Samsung Electronics
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Marie and Samsung is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Marie Brizard i.e., Marie Brizard and Samsung Electronics go up and down completely randomly.
Pair Corralation between Marie Brizard and Samsung Electronics
Assuming the 90 days trading horizon Marie Brizard Wine is expected to generate 0.91 times more return on investment than Samsung Electronics. However, Marie Brizard Wine is 1.1 times less risky than Samsung Electronics. It trades about 0.09 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.03 per unit of risk. If you would invest 219.00 in Marie Brizard Wine on September 1, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marie Brizard Wine vs. Samsung Electronics Co
Performance |
| Timeline |
| Marie Brizard Wine |
| Samsung Electronics |
Marie Brizard and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and Samsung Electronics
The main advantage of trading using opposite Marie Brizard and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' 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 |
| Samsung Electronics vs. VIVA WINE GROUP | Samsung Electronics vs. Haverty Furniture Companies | Samsung Electronics vs. American Homes 4 | Samsung Electronics vs. Marie Brizard Wine |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |