Correlation Between Shoper SA and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Shoper SA 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 Shoper SA and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shoper SA and Marie Brizard Wine, you can compare the effects of market volatilities on Shoper SA 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 Shoper SA with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoper SA and Marie Brizard.
Diversification Opportunities for Shoper SA and Marie Brizard
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shoper and Marie is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Shoper SA 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 Shoper SA 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 Shoper SA 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 Shoper SA i.e., Shoper SA and Marie Brizard go up and down completely randomly.
Pair Corralation between Shoper SA and Marie Brizard
Assuming the 90 days trading horizon Shoper SA is expected to generate 2.32 times less return on investment than Marie Brizard. But when comparing it to its historical volatility, Shoper SA is 1.42 times less risky than Marie Brizard. It trades about 0.03 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,460 in Marie Brizard Wine on September 5, 2024 and sell it today you would earn a total of 180.00 from holding Marie Brizard Wine or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shoper SA vs. Marie Brizard Wine
Performance |
| Timeline |
| Shoper SA |
| Marie Brizard Wine |
Shoper SA and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shoper SA and Marie Brizard
The main advantage of trading using opposite Shoper SA and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoper SA 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.| Shoper SA vs. Marie Brizard Wine | Shoper SA vs. UF Games SA | Shoper SA vs. Centrum Finansowe Banku | Shoper SA vs. ING Bank lski |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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