Correlation Between FNP Technologies and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both FNP Technologies 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 FNP Technologies and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNP Technologies SA and Marie Brizard Wine, you can compare the effects of market volatilities on FNP Technologies 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 FNP Technologies with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNP Technologies and Marie Brizard.
Diversification Opportunities for FNP Technologies and Marie Brizard
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FNP and Marie is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding FNP Technologies 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 FNP Technologies 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 FNP Technologies 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 FNP Technologies i.e., FNP Technologies and Marie Brizard go up and down completely randomly.
Pair Corralation between FNP Technologies and Marie Brizard
If you would invest 380.00 in Marie Brizard Wine on September 14, 2024 and sell it today you would earn a total of 7.00 from holding Marie Brizard Wine or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNP Technologies SA vs. Marie Brizard Wine
Performance |
| Timeline |
| FNP Technologies |
| Marie Brizard Wine |
FNP Technologies and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNP Technologies and Marie Brizard
The main advantage of trading using opposite FNP Technologies and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNP Technologies 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.| FNP Technologies vs. Axway Software | FNP Technologies vs. Gaztransport Technigaz SAS | FNP Technologies vs. Sartorius Stedim Biotech | FNP Technologies vs. Guandao Puer Investment |
| Marie Brizard vs. Stef SA | Marie Brizard vs. Bonduelle SCA | Marie Brizard vs. Interparfums SA | Marie Brizard vs. Manitou BF 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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