Correlation Between Indutrade and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Indutrade 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 Indutrade and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indutrade AB and Marie Brizard Wine, you can compare the effects of market volatilities on Indutrade 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 Indutrade with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indutrade and Marie Brizard.
Diversification Opportunities for Indutrade and Marie Brizard
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indutrade and Marie is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Indutrade AB 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 Indutrade 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 Indutrade AB 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 Indutrade i.e., Indutrade and Marie Brizard go up and down completely randomly.
Pair Corralation between Indutrade and Marie Brizard
Assuming the 90 days horizon Indutrade AB is expected to generate 1.54 times more return on investment than Marie Brizard. However, Indutrade is 1.54 times more volatile than Marie Brizard Wine. It trades about 0.13 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.15 per unit of risk. If you would invest 2,386 in Indutrade AB on October 30, 2024 and sell it today you would earn a total of 162.00 from holding Indutrade AB or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indutrade AB vs. Marie Brizard Wine
Performance |
| Timeline |
| Indutrade AB |
| Marie Brizard Wine |
Indutrade and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indutrade and Marie Brizard
The main advantage of trading using opposite Indutrade and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indutrade 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.| Indutrade vs. CEOTRONICS | Indutrade vs. Cass Information Systems | Indutrade vs. China Datang | Indutrade vs. Waste Management |
| Marie Brizard vs. ADRIATIC METALS LS 013355 | Marie Brizard vs. AMAG Austria Metall | Marie Brizard vs. MAG SILVER | Marie Brizard vs. Monument Mining Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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