Correlation Between Rmy Cointreau and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Rmy Cointreau and Carlsberg 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 Rmy Cointreau and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rmy Cointreau SA and Carlsberg AS, you can compare the effects of market volatilities on Rmy Cointreau and Carlsberg 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 Rmy Cointreau with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rmy Cointreau and Carlsberg.
Diversification Opportunities for Rmy Cointreau and Carlsberg
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rmy and Carlsberg is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Rmy Cointreau SA and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS and Rmy 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 Rmy Cointreau SA are associated (or correlated) with Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Rmy Cointreau i.e., Rmy Cointreau and Carlsberg go up and down completely randomly.
Pair Corralation between Rmy Cointreau and Carlsberg
Assuming the 90 days horizon Rmy Cointreau SA is expected to under-perform the Carlsberg. In addition to that, Rmy Cointreau is 1.23 times more volatile than Carlsberg AS. It trades about -0.11 of its total potential returns per unit of risk. Carlsberg AS is currently generating about -0.06 per unit of volatility. If you would invest 9,833 in Carlsberg AS on October 20, 2024 and sell it today you would lose (249.00) from holding Carlsberg AS or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rmy Cointreau SA vs. Carlsberg AS
Performance |
| Timeline |
| Rmy Cointreau SA |
| Carlsberg AS |
Rmy Cointreau and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rmy Cointreau and Carlsberg
The main advantage of trading using opposite Rmy Cointreau and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rmy Cointreau position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Rmy Cointreau vs. Remy Cointreau SA | Rmy Cointreau vs. Pernod Ricard SA | Rmy Cointreau vs. Carlsberg AS | Rmy Cointreau vs. Heineken Holding NV |
| Carlsberg vs. Heineken NV | Carlsberg vs. Anheuser Busch Inbev | Carlsberg vs. Compania Cervecerias Unidas | Carlsberg vs. Boston Beer |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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