Correlation Between Flowers Foods and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Flowers Foods 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 Flowers Foods and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flowers Foods and Marie Brizard Wine, you can compare the effects of market volatilities on Flowers Foods 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 Flowers Foods with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowers Foods and Marie Brizard.
Diversification Opportunities for Flowers Foods and Marie Brizard
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Flowers and Marie is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Flowers Foods 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 Flowers Foods 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 Flowers Foods 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 Flowers Foods i.e., Flowers Foods and Marie Brizard go up and down completely randomly.
Pair Corralation between Flowers Foods and Marie Brizard
Assuming the 90 days horizon Flowers Foods is expected to under-perform the Marie Brizard. But the stock apears to be less risky and, when comparing its historical volatility, Flowers Foods is 1.17 times less risky than Marie Brizard. The stock trades about -0.01 of its potential returns per unit of risk. The Marie Brizard Wine is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 213.00 in Marie Brizard Wine on October 16, 2024 and sell it today you would earn a total of 165.00 from holding Marie Brizard Wine or generate 77.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flowers Foods vs. Marie Brizard Wine
Performance |
| Timeline |
| Flowers Foods |
| Marie Brizard Wine |
Flowers Foods and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flowers Foods and Marie Brizard
The main advantage of trading using opposite Flowers Foods and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowers Foods 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.| Flowers Foods vs. CN MODERN DAIRY | Flowers Foods vs. Tyson Foods | Flowers Foods vs. Cal Maine Foods | Flowers Foods vs. FRACTAL GAMING GROUP |
| Marie Brizard vs. MARKET VECTR RETAIL | Marie Brizard vs. Flowers Foods | Marie Brizard vs. INDOFOOD AGRI RES | Marie Brizard vs. Indutrade AB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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