Correlation Between EIDESVIK OFFSHORE and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EIDESVIK OFFSHORE NK and Marie Brizard Wine, you can compare the effects of market volatilities on EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and Marie Brizard.
Diversification Opportunities for EIDESVIK OFFSHORE and Marie Brizard
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between EIDESVIK and Marie is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK 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 EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE NK 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 EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and Marie Brizard go up and down completely randomly.
Pair Corralation between EIDESVIK OFFSHORE and Marie Brizard
Assuming the 90 days horizon EIDESVIK OFFSHORE NK is expected to under-perform the Marie Brizard. But the stock apears to be less risky and, when comparing its historical volatility, EIDESVIK OFFSHORE NK is 1.07 times less risky than Marie Brizard. The stock trades about -0.03 of its potential returns per unit of risk. The Marie Brizard Wine is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 379.00 in Marie Brizard Wine on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Marie Brizard Wine or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIDESVIK OFFSHORE NK vs. Marie Brizard Wine
Performance |
| Timeline |
| EIDESVIK OFFSHORE |
| Marie Brizard Wine |
EIDESVIK OFFSHORE and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIDESVIK OFFSHORE and Marie Brizard
The main advantage of trading using opposite EIDESVIK OFFSHORE and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE 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.| EIDESVIK OFFSHORE vs. TAL Education Group | EIDESVIK OFFSHORE vs. PLAYTIKA HOLDING DL 01 | EIDESVIK OFFSHORE vs. GigaMedia | EIDESVIK OFFSHORE vs. DeVry Education Group |
| Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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