Correlation Between Marie Brizard and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and Igoria Trade 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 Marie Brizard and Igoria Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marie Brizard Wine and Igoria Trade SA, you can compare the effects of market volatilities on Marie Brizard and Igoria Trade 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 Marie Brizard with a short position of Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and Igoria Trade.
Diversification Opportunities for Marie Brizard and Igoria Trade
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Marie and Igoria is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Igoria Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Igoria Trade SA and Marie Brizard 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 Marie Brizard Wine are associated (or correlated) with Igoria Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Igoria Trade SA has no effect on the direction of Marie Brizard i.e., Marie Brizard and Igoria Trade go up and down completely randomly.
Pair Corralation between Marie Brizard and Igoria Trade
Assuming the 90 days trading horizon Marie Brizard is expected to generate 1.29 times less return on investment than Igoria Trade. But when comparing it to its historical volatility, Marie Brizard Wine is 2.1 times less risky than Igoria Trade. It trades about 0.04 of its potential returns per unit of risk. Igoria Trade SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Igoria Trade SA on August 29, 2024 and sell it today you would lose (2.00) from holding Igoria Trade SA or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.56% |
| Values | Daily Returns |
Marie Brizard Wine vs. Igoria Trade SA
Performance |
| Timeline |
| Marie Brizard Wine |
| Igoria Trade SA |
Marie Brizard and Igoria Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and Igoria Trade
The main advantage of trading using opposite Marie Brizard and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, Igoria Trade 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 Igoria Trade will offset losses from the drop in Igoria Trade's long position.| Marie Brizard vs. Banco Santander SA | Marie Brizard vs. UniCredit SpA | Marie Brizard vs. CEZ as | Marie Brizard vs. Polski Koncern Naftowy |
| Igoria Trade vs. NGG | Igoria Trade vs. Asseco Business Solutions | Igoria Trade vs. Detalion Games SA | Igoria Trade vs. CFI Holding SA |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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