Correlation Between Schweizer Electronic and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Schweizer Electronic and Marie Brizard 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 Schweizer Electronic and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweizer Electronic AG and Marie Brizard Wine, you can compare the effects of market volatilities on Schweizer Electronic and Marie Brizard 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 Schweizer Electronic with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweizer Electronic and Marie Brizard.
Diversification Opportunities for Schweizer Electronic and Marie Brizard
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Schweizer and Marie is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Schweizer Electronic AG and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine and Schweizer Electronic 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 Schweizer Electronic AG are associated (or correlated) with Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Schweizer Electronic i.e., Schweizer Electronic and Marie Brizard go up and down completely randomly.
Pair Corralation between Schweizer Electronic and Marie Brizard
Assuming the 90 days horizon Schweizer Electronic AG is expected to under-perform the Marie Brizard. In addition to that, Schweizer Electronic is 1.57 times more volatile than Marie Brizard Wine. It trades about -0.14 of its total potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.07 per unit of volatility. If you would invest 314.00 in Marie Brizard Wine on September 28, 2024 and sell it today you would earn a total of 61.00 from holding Marie Brizard Wine or generate 19.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweizer Electronic AG vs. Marie Brizard Wine
Performance |
| Timeline |
| Schweizer Electronic |
| Marie Brizard Wine |
Schweizer Electronic and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweizer Electronic and Marie Brizard
The main advantage of trading using opposite Schweizer Electronic and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweizer Electronic position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| Schweizer Electronic vs. Fair Isaac Corp | Schweizer Electronic vs. NORWEGIAN AIR SHUT | Schweizer Electronic vs. Alaska Air Group | Schweizer Electronic vs. Transportadora de Gas |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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