Correlation Between Marie Brizard and Boiron SA
Can any of the company-specific risk be diversified away by investing in both Marie Brizard and Boiron SA 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 Boiron SA 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 Boiron SA, you can compare the effects of market volatilities on Marie Brizard and Boiron SA 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 Boiron SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and Boiron SA.
Diversification Opportunities for Marie Brizard and Boiron SA
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Marie and Boiron is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Boiron SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boiron 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 Boiron SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boiron SA has no effect on the direction of Marie Brizard i.e., Marie Brizard and Boiron SA go up and down completely randomly.
Pair Corralation between Marie Brizard and Boiron SA
Assuming the 90 days trading horizon Marie Brizard Wine is expected to generate 0.7 times more return on investment than Boiron SA. However, Marie Brizard Wine is 1.43 times less risky than Boiron SA. It trades about 0.1 of its potential returns per unit of risk. Boiron SA is currently generating about 0.0 per unit of risk. If you would invest 221.00 in Marie Brizard Wine on August 31, 2024 and sell it today you would earn a total of 166.00 from holding Marie Brizard Wine or generate 75.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Marie Brizard Wine vs. Boiron SA
Performance |
| Timeline |
| Marie Brizard Wine |
| Boiron SA |
Marie Brizard and Boiron SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and Boiron SA
The main advantage of trading using opposite Marie Brizard and Boiron SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard position performs unexpectedly, Boiron SA 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 Boiron SA will offset losses from the drop in Boiron SA's long position.| Marie Brizard vs. Lacroix Group SA | Marie Brizard vs. Damartex | Marie Brizard vs. BigBen Interactive | Marie Brizard vs. Clasquin |
| Boiron SA vs. Virbac SA | Boiron SA vs. Bonduelle SCA | Boiron SA vs. Biomerieux SA | Boiron SA vs. Guerbet S A |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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