Correlation Between Stag Industrial and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Stag Industrial 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 Stag Industrial and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stag Industrial and Marie Brizard Wine, you can compare the effects of market volatilities on Stag Industrial 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 Stag Industrial with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stag Industrial and Marie Brizard.
Diversification Opportunities for Stag Industrial and Marie Brizard
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stag and Marie is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Stag Industrial 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 Stag Industrial 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 Stag Industrial 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 Stag Industrial i.e., Stag Industrial and Marie Brizard go up and down completely randomly.
Pair Corralation between Stag Industrial and Marie Brizard
Assuming the 90 days trading horizon Stag Industrial is expected to generate 1.04 times more return on investment than Marie Brizard. However, Stag Industrial is 1.04 times more volatile than Marie Brizard Wine. It trades about 0.12 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.52 per unit of risk. If you would invest 3,199 in Stag Industrial on November 3, 2024 and sell it today you would earn a total of 82.00 from holding Stag Industrial or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stag Industrial vs. Marie Brizard Wine
Performance |
| Timeline |
| Stag Industrial |
| Marie Brizard Wine |
Stag Industrial and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stag Industrial and Marie Brizard
The main advantage of trading using opposite Stag Industrial and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stag Industrial 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.| Stag Industrial vs. SIVERS SEMICONDUCTORS AB | Stag Industrial vs. NorAm Drilling AS | Stag Industrial vs. Volkswagen AG | Stag Industrial vs. Darden Restaurants |
| Marie Brizard vs. CarsalesCom | Marie Brizard vs. Singapore Reinsurance | Marie Brizard vs. BOS BETTER ONLINE | Marie Brizard vs. YATRA ONLINE DL 0001 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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