Correlation Between Carlsberg A/S and Remy Cointreau
Can any of the company-specific risk be diversified away by investing in both Carlsberg A/S and Remy Cointreau 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 Carlsberg A/S and Remy Cointreau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and Remy Cointreau SA, you can compare the effects of market volatilities on Carlsberg A/S and Remy Cointreau 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 Carlsberg A/S with a short position of Remy Cointreau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg A/S and Remy Cointreau.
Diversification Opportunities for Carlsberg A/S and Remy Cointreau
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlsberg and Remy is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Remy Cointreau SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remy Cointreau SA and Carlsberg A/S 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 Carlsberg AS are associated (or correlated) with Remy Cointreau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remy Cointreau SA has no effect on the direction of Carlsberg A/S i.e., Carlsberg A/S and Remy Cointreau go up and down completely randomly.
Pair Corralation between Carlsberg A/S and Remy Cointreau
Assuming the 90 days horizon Carlsberg AS is expected to generate 1.24 times more return on investment than Remy Cointreau. However, Carlsberg A/S is 1.24 times more volatile than Remy Cointreau SA. It trades about -0.01 of its potential returns per unit of risk. Remy Cointreau SA is currently generating about -0.1 per unit of risk. If you would invest 11,390 in Carlsberg AS on November 2, 2024 and sell it today you would lose (897.00) from holding Carlsberg AS or give up 7.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
Carlsberg AS vs. Remy Cointreau SA
Performance |
| Timeline |
| Carlsberg A/S |
| Remy Cointreau SA |
Carlsberg A/S and Remy Cointreau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg A/S and Remy Cointreau
The main advantage of trading using opposite Carlsberg A/S and Remy Cointreau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg A/S position performs unexpectedly, Remy Cointreau 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 Remy Cointreau will offset losses from the drop in Remy Cointreau's long position.| Carlsberg A/S vs. Heineken NV | Carlsberg A/S vs. Anheuser Busch Inbev | Carlsberg A/S vs. Compania Cervecerias Unidas | Carlsberg A/S vs. Boston Beer |
| Remy Cointreau vs. Diageo PLC ADR | Remy Cointreau vs. Pernod Ricard SA | Remy Cointreau vs. Treasury Wine Estates | Remy Cointreau vs. MGP Ingredients |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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