Correlation Between Baked Games and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Baked Games and Marie Brizard 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 Baked Games and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baked Games SA and Marie Brizard Wine, you can compare the effects of market volatilities on Baked Games and Marie Brizard 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 Baked Games with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baked Games and Marie Brizard.
Diversification Opportunities for Baked Games and Marie Brizard
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baked and Marie is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Baked Games SA and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine and Baked Games 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 Baked Games SA are associated (or correlated) with Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Baked Games i.e., Baked Games and Marie Brizard go up and down completely randomly.
Pair Corralation between Baked Games and Marie Brizard
Assuming the 90 days trading horizon Baked Games SA is expected to under-perform the Marie Brizard. In addition to that, Baked Games is 1.14 times more volatile than Marie Brizard Wine. It trades about -0.06 of its total potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.04 per unit of volatility. If you would invest 1,460 in Marie Brizard Wine on September 3, 2024 and sell it today you would earn a total of 180.00 from holding Marie Brizard Wine or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Baked Games SA vs. Marie Brizard Wine
Performance |
| Timeline |
| Baked Games SA |
| Marie Brizard Wine |
Baked Games and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baked Games and Marie Brizard
The main advantage of trading using opposite Baked Games and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baked Games position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| Baked Games vs. Banco Santander SA | Baked Games vs. UniCredit SpA | Baked Games vs. CEZ as | Baked Games vs. Polski Koncern Naftowy |
| Marie Brizard vs. Banco Santander SA | Marie Brizard vs. UniCredit SpA | Marie Brizard vs. CEZ as | Marie Brizard vs. Polski Koncern Naftowy |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |