Correlation Between GigaMedia and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both GigaMedia 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 GigaMedia and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaMedia and Marie Brizard Wine, you can compare the effects of market volatilities on GigaMedia 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 GigaMedia with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and Marie Brizard.
Diversification Opportunities for GigaMedia and Marie Brizard
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between GigaMedia and Marie is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia 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 GigaMedia 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 GigaMedia 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 GigaMedia i.e., GigaMedia and Marie Brizard go up and down completely randomly.
Pair Corralation between GigaMedia and Marie Brizard
Assuming the 90 days trading horizon GigaMedia is expected to generate 1.3 times more return on investment than Marie Brizard. However, GigaMedia is 1.3 times more volatile than Marie Brizard Wine. It trades about 0.2 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.02 per unit of risk. If you would invest 124.00 in GigaMedia on August 31, 2024 and sell it today you would earn a total of 9.00 from holding GigaMedia or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaMedia vs. Marie Brizard Wine
Performance |
| Timeline |
| GigaMedia |
| Marie Brizard Wine |
GigaMedia and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and Marie Brizard
The main advantage of trading using opposite GigaMedia and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia 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.| GigaMedia vs. JJ SNACK FOODS | GigaMedia vs. MOLSON RS BEVERAGE | GigaMedia vs. Astral Foods Limited | GigaMedia vs. Zijin Mining Group |
| Marie Brizard vs. SIVERS SEMICONDUCTORS AB | Marie Brizard vs. Darden Restaurants | Marie Brizard vs. Reliance Steel Aluminum | Marie Brizard vs. Q2M Managementberatung AG |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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