Correlation Between Remy Cointreau and Socit BIC
Can any of the company-specific risk be diversified away by investing in both Remy Cointreau and Socit BIC 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 Remy Cointreau and Socit BIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Remy Cointreau and Socit BIC SA, you can compare the effects of market volatilities on Remy Cointreau and Socit BIC 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 Remy Cointreau with a short position of Socit BIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remy Cointreau and Socit BIC.
Diversification Opportunities for Remy Cointreau and Socit BIC
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Remy and Socit is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Remy Cointreau and Socit BIC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit BIC SA and Remy Cointreau 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 Remy Cointreau are associated (or correlated) with Socit BIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit BIC SA has no effect on the direction of Remy Cointreau i.e., Remy Cointreau and Socit BIC go up and down completely randomly.
Pair Corralation between Remy Cointreau and Socit BIC
Assuming the 90 days trading horizon Remy Cointreau is expected to generate 2.87 times more return on investment than Socit BIC. However, Remy Cointreau is 2.87 times more volatile than Socit BIC SA. It trades about -0.05 of its potential returns per unit of risk. Socit BIC SA is currently generating about -0.54 per unit of risk. If you would invest 5,995 in Remy Cointreau on August 28, 2024 and sell it today you would lose (170.00) from holding Remy Cointreau or give up 2.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Remy Cointreau vs. Socit BIC SA
Performance |
| Timeline |
| Remy Cointreau |
| Socit BIC SA |
Remy Cointreau and Socit BIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Remy Cointreau and Socit BIC
The main advantage of trading using opposite Remy Cointreau and Socit BIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Remy Cointreau position performs unexpectedly, Socit BIC 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 Socit BIC will offset losses from the drop in Socit BIC's long position.| Remy Cointreau vs. Robertet SA | Remy Cointreau vs. Virbac SA | Remy Cointreau vs. Thermador Groupe SA | Remy Cointreau vs. Elis SA |
| Socit BIC vs. Imerys SA | Socit BIC vs. Casino Guichard Perrachon | Socit BIC vs. SEB SA | Socit BIC vs. Mtropole Tlvision 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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