Correlation Between Rmy Cointreau and Remy Cointreau
Can any of the company-specific risk be diversified away by investing in both Rmy Cointreau 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 Rmy Cointreau and Remy Cointreau 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 Remy Cointreau SA, you can compare the effects of market volatilities on Rmy Cointreau 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 Rmy Cointreau with a short position of Remy Cointreau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rmy Cointreau and Remy Cointreau.
Diversification Opportunities for Rmy Cointreau and Remy Cointreau
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rmy and Remy is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Rmy Cointreau SA and Remy Cointreau SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remy Cointreau SA 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 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 SA has no effect on the direction of Rmy Cointreau i.e., Rmy Cointreau and Remy Cointreau go up and down completely randomly.
Pair Corralation between Rmy Cointreau and Remy Cointreau
Assuming the 90 days horizon Rmy Cointreau is expected to generate 1.2 times less return on investment than Remy Cointreau. In addition to that, Rmy Cointreau is 1.23 times more volatile than Remy Cointreau SA. It trades about 0.32 of its total potential returns per unit of risk. Remy Cointreau SA is currently generating about 0.47 per unit of volatility. If you would invest 564.00 in Remy Cointreau SA on September 14, 2024 and sell it today you would earn a total of 111.00 from holding Remy Cointreau SA or generate 19.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rmy Cointreau SA vs. Remy Cointreau SA
Performance |
| Timeline |
| Rmy Cointreau SA |
| Remy Cointreau SA |
Rmy Cointreau and Remy Cointreau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rmy Cointreau and Remy Cointreau
The main advantage of trading using opposite Rmy Cointreau and Remy Cointreau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rmy Cointreau 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.| Rmy Cointreau vs. Remy Cointreau SA | Rmy Cointreau vs. Pernod Ricard SA | Rmy Cointreau vs. Carlsberg AS | Rmy Cointreau vs. Heineken Holding NV |
| Remy Cointreau vs. Andrew Peller Limited | Remy Cointreau vs. Aristocrat Group Corp | Remy Cointreau vs. Iconic Brands | Remy Cointreau vs. Naked Wines plc |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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