Correlation Between Bank Millennium and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Bank Millennium 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 Bank Millennium and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Millennium SA and Marie Brizard Wine, you can compare the effects of market volatilities on Bank Millennium 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 Bank Millennium with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Millennium and Marie Brizard.
Diversification Opportunities for Bank Millennium and Marie Brizard
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Marie is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bank Millennium SA 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 Bank Millennium 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 Bank Millennium SA 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 Bank Millennium i.e., Bank Millennium and Marie Brizard go up and down completely randomly.
Pair Corralation between Bank Millennium and Marie Brizard
Assuming the 90 days trading horizon Bank Millennium SA is expected to generate 0.83 times more return on investment than Marie Brizard. However, Bank Millennium SA is 1.21 times less risky than Marie Brizard. It trades about 0.06 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.05 per unit of risk. If you would invest 444.00 in Bank Millennium SA on August 30, 2024 and sell it today you would earn a total of 368.00 from holding Bank Millennium SA or generate 82.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Millennium SA vs. Marie Brizard Wine
Performance |
| Timeline |
| Bank Millennium SA |
| Marie Brizard Wine |
Bank Millennium and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Millennium and Marie Brizard
The main advantage of trading using opposite Bank Millennium and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Millennium 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.| Bank Millennium vs. UniCredit SpA | Bank Millennium vs. Santander Bank Polska | Bank Millennium vs. Bank Polska Kasa | Bank Millennium vs. ING Bank lski |
| Marie Brizard vs. Banco Santander SA | Marie Brizard vs. UniCredit SpA | Marie Brizard vs. CEZ as | Marie Brizard vs. Polski Koncern Naftowy |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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