Correlation Between Marie Brizard and CREDIT AGRICOLE
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and CREDIT AGRICOLE 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 CREDIT AGRICOLE 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 CREDIT AGRICOLE, you can compare the effects of market volatilities on Marie Brizard and CREDIT AGRICOLE 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 CREDIT AGRICOLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and CREDIT AGRICOLE.
Diversification Opportunities for Marie Brizard and CREDIT AGRICOLE
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marie and CREDIT is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and CREDIT AGRICOLE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT AGRICOLE 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 CREDIT AGRICOLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDIT AGRICOLE has no effect on the direction of Marie Brizard i.e., Marie Brizard and CREDIT AGRICOLE go up and down completely randomly.
Pair Corralation between Marie Brizard and CREDIT AGRICOLE
Assuming the 90 days trading horizon Marie Brizard Wine is expected to generate 0.83 times more return on investment than CREDIT AGRICOLE. However, Marie Brizard Wine is 1.2 times less risky than CREDIT AGRICOLE. It trades about 0.08 of its potential returns per unit of risk. CREDIT AGRICOLE is currently generating about -0.23 per unit of risk. If you would invest 382.00 in Marie Brizard Wine on August 25, 2024 and sell it today you would earn a total of 8.00 from holding Marie Brizard Wine or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marie Brizard Wine vs. CREDIT AGRICOLE
Performance |
| Timeline |
| Marie Brizard Wine |
| CREDIT AGRICOLE |
Marie Brizard and CREDIT AGRICOLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and CREDIT AGRICOLE
The main advantage of trading using opposite Marie Brizard and CREDIT AGRICOLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, CREDIT AGRICOLE 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 CREDIT AGRICOLE will offset losses from the drop in CREDIT AGRICOLE's long position.| Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc |
| CREDIT AGRICOLE vs. Perseus Mining Limited | CREDIT AGRICOLE vs. SERI INDUSTRIAL EO | CREDIT AGRICOLE vs. GREENX METALS LTD | CREDIT AGRICOLE vs. XLMedia PLC |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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