Correlation Between Rémy Cointreau and INSURANCE AUST
Can any of the company-specific risk be diversified away by investing in both Rémy Cointreau and INSURANCE AUST 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 Rémy Cointreau and INSURANCE AUST 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 INSURANCE AUST GRP, you can compare the effects of market volatilities on Rémy Cointreau and INSURANCE AUST 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 Rémy Cointreau with a short position of INSURANCE AUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rémy Cointreau and INSURANCE AUST.
Diversification Opportunities for Rémy Cointreau and INSURANCE AUST
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rémy and INSURANCE is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Rmy Cointreau SA and INSURANCE AUST GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSURANCE AUST GRP and Rémy 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 INSURANCE AUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSURANCE AUST GRP has no effect on the direction of Rémy Cointreau i.e., Rémy Cointreau and INSURANCE AUST go up and down completely randomly.
Pair Corralation between Rémy Cointreau and INSURANCE AUST
If you would invest 0.00 in Rmy Cointreau SA on October 10, 2024 and sell it today you would earn a total of 0.00 from holding Rmy Cointreau SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.88% |
| Values | Daily Returns |
Rmy Cointreau SA vs. INSURANCE AUST GRP
Performance |
| Timeline |
| Rmy Cointreau SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| INSURANCE AUST GRP |
Rémy Cointreau and INSURANCE AUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rémy Cointreau and INSURANCE AUST
The main advantage of trading using opposite Rémy Cointreau and INSURANCE AUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rémy Cointreau position performs unexpectedly, INSURANCE AUST 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 INSURANCE AUST will offset losses from the drop in INSURANCE AUST's long position.| Rémy Cointreau vs. Direct Line Insurance | Rémy Cointreau vs. Austevoll Seafood ASA | Rémy Cointreau vs. THAI BEVERAGE | Rémy Cointreau vs. JSC Halyk bank |
| INSURANCE AUST vs. ALLFUNDS GROUP EO 0025 | INSURANCE AUST vs. Major Drilling Group | INSURANCE AUST vs. Apollo Investment Corp | INSURANCE AUST vs. QINGCI GAMES INC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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