Correlation Between Marie Brizard and UniCredit SpA
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and UniCredit SpA 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 UniCredit SpA 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 UniCredit SpA, you can compare the effects of market volatilities on Marie Brizard and UniCredit SpA 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 UniCredit SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and UniCredit SpA.
Diversification Opportunities for Marie Brizard and UniCredit SpA
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marie and UniCredit is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and UniCredit SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UniCredit SpA 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 UniCredit SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UniCredit SpA has no effect on the direction of Marie Brizard i.e., Marie Brizard and UniCredit SpA go up and down completely randomly.
Pair Corralation between Marie Brizard and UniCredit SpA
Assuming the 90 days trading horizon Marie Brizard Wine is expected to generate 1.6 times more return on investment than UniCredit SpA. However, Marie Brizard is 1.6 times more volatile than UniCredit SpA. It trades about 0.04 of its potential returns per unit of risk. UniCredit SpA is currently generating about 0.01 per unit of risk. If you would invest 1,460 in Marie Brizard Wine on August 30, 2024 and sell it today you would earn a total of 185.00 from holding Marie Brizard Wine or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Marie Brizard Wine vs. UniCredit SpA
Performance |
| Timeline |
| Marie Brizard Wine |
| UniCredit SpA |
Marie Brizard and UniCredit SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and UniCredit SpA
The main advantage of trading using opposite Marie Brizard and UniCredit SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, UniCredit SpA 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 UniCredit SpA will offset losses from the drop in UniCredit SpA'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 |
| UniCredit SpA vs. Santander Bank Polska | UniCredit SpA vs. Bank Polska Kasa | UniCredit SpA vs. Bank Handlowy w | UniCredit SpA vs. BNP Paribas Bank |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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