Correlation Between La Savonnerie and Remy Cointreau
Can any of the company-specific risk be diversified away by investing in both La Savonnerie and Remy Cointreau 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 La Savonnerie and Remy Cointreau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between La Savonnerie de and Remy Cointreau, you can compare the effects of market volatilities on La Savonnerie and Remy Cointreau 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 La Savonnerie with a short position of Remy Cointreau. Check out your portfolio center. Please also check ongoing floating volatility patterns of La Savonnerie and Remy Cointreau.
Diversification Opportunities for La Savonnerie and Remy Cointreau
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MLSDN and Remy is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding La Savonnerie de and Remy Cointreau in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remy Cointreau and La Savonnerie 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 La Savonnerie de are associated (or correlated) with Remy Cointreau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remy Cointreau has no effect on the direction of La Savonnerie i.e., La Savonnerie and Remy Cointreau go up and down completely randomly.
Pair Corralation between La Savonnerie and Remy Cointreau
Assuming the 90 days trading horizon La Savonnerie de is expected to generate 1.58 times more return on investment than Remy Cointreau. However, La Savonnerie is 1.58 times more volatile than Remy Cointreau. It trades about 0.02 of its potential returns per unit of risk. Remy Cointreau is currently generating about -0.09 per unit of risk. If you would invest 2,880 in La Savonnerie de on August 29, 2024 and sell it today you would earn a total of 100.00 from holding La Savonnerie de or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.44% |
| Values | Daily Returns |
La Savonnerie de vs. Remy Cointreau
Performance |
| Timeline |
| La Savonnerie de |
| Remy Cointreau |
La Savonnerie and Remy Cointreau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with La Savonnerie and Remy Cointreau
The main advantage of trading using opposite La Savonnerie and Remy Cointreau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if La Savonnerie position performs unexpectedly, Remy Cointreau 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 Remy Cointreau will offset losses from the drop in Remy Cointreau's long position.| La Savonnerie vs. Poulaillon SA | La Savonnerie vs. Poujoulat SA | La Savonnerie vs. Trilogiq | La Savonnerie vs. Sergeferrari G |
| Remy Cointreau vs. Pernod Ricard SA | Remy Cointreau vs. SEB SA | Remy Cointreau vs. Sodexo SA | Remy Cointreau vs. Wendel |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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