Correlation Between Hemisphere Energy and Rémy Cointreau
Can any of the company-specific risk be diversified away by investing in both Hemisphere Energy and Rémy 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 Hemisphere Energy and Rémy Cointreau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hemisphere Energy Corp and Rmy Cointreau SA, you can compare the effects of market volatilities on Hemisphere Energy and Rémy 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 Hemisphere Energy with a short position of Rémy Cointreau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hemisphere Energy and Rémy Cointreau.
Diversification Opportunities for Hemisphere Energy and Rémy Cointreau
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hemisphere and Rémy is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hemisphere Energy Corp and Rmy Cointreau SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rmy Cointreau SA and Hemisphere Energy 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 Hemisphere Energy Corp are associated (or correlated) with Rémy Cointreau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rmy Cointreau SA has no effect on the direction of Hemisphere Energy i.e., Hemisphere Energy and Rémy Cointreau go up and down completely randomly.
Pair Corralation between Hemisphere Energy and Rémy Cointreau
Assuming the 90 days trading horizon Hemisphere Energy Corp is expected to generate 0.54 times more return on investment than Rémy Cointreau. However, Hemisphere Energy Corp is 1.85 times less risky than Rémy Cointreau. It trades about -0.04 of its potential returns per unit of risk. Rmy Cointreau SA is currently generating about -0.14 per unit of risk. If you would invest 122.00 in Hemisphere Energy Corp on October 22, 2024 and sell it today you would lose (1.00) from holding Hemisphere Energy Corp or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hemisphere Energy Corp vs. Rmy Cointreau SA
Performance |
| Timeline |
| Hemisphere Energy Corp |
| Rmy Cointreau SA |
Hemisphere Energy and Rémy Cointreau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hemisphere Energy and Rémy Cointreau
The main advantage of trading using opposite Hemisphere Energy and Rémy Cointreau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hemisphere Energy position performs unexpectedly, Rémy 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 Rémy Cointreau will offset losses from the drop in Rémy Cointreau's long position.| Hemisphere Energy vs. WT OFFSHORE | Hemisphere Energy vs. Highlight Communications AG | Hemisphere Energy vs. FIH MOBILE | Hemisphere Energy vs. Cairo Communication SpA |
| Rémy Cointreau vs. Ross Stores | Rémy Cointreau vs. H2O Retailing | Rémy Cointreau vs. Retail Estates NV | Rémy Cointreau vs. JIAHUA STORES |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |