Correlation Between 19123MAF0 and Constellation Brands
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By analyzing existing cross correlation between CCEP 15 15 JAN 27 and Constellation Brands Class, you can compare the effects of market volatilities on 19123MAF0 and Constellation Brands 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 19123MAF0 with a short position of Constellation Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of 19123MAF0 and Constellation Brands.
Diversification Opportunities for 19123MAF0 and Constellation Brands
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 19123MAF0 and Constellation is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding CCEP 15 15 JAN 27 and Constellation Brands Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Constellation Brands and 19123MAF0 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 CCEP 15 15 JAN 27 are associated (or correlated) with Constellation Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Constellation Brands has no effect on the direction of 19123MAF0 i.e., 19123MAF0 and Constellation Brands go up and down completely randomly.
Pair Corralation between 19123MAF0 and Constellation Brands
Assuming the 90 days trading horizon CCEP 15 15 JAN 27 is expected to under-perform the Constellation Brands. But the bond apears to be less risky and, when comparing its historical volatility, CCEP 15 15 JAN 27 is 1.02 times less risky than Constellation Brands. The bond trades about -0.27 of its potential returns per unit of risk. The Constellation Brands Class is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 23,620 in Constellation Brands Class on September 12, 2024 and sell it today you would earn a total of 640.00 from holding Constellation Brands Class or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
CCEP 15 15 JAN 27 vs. Constellation Brands Class
Performance |
| Timeline |
| CCEP 15 15 |
| Constellation Brands |
19123MAF0 and Constellation Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 19123MAF0 and Constellation Brands
The main advantage of trading using opposite 19123MAF0 and Constellation Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 19123MAF0 position performs unexpectedly, Constellation Brands 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 Constellation Brands will offset losses from the drop in Constellation Brands' long position.The idea behind CCEP 15 15 JAN 27 and Constellation Brands Class pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Constellation Brands vs. Brown Forman | Constellation Brands vs. Duckhorn Portfolio | Constellation Brands vs. MGP Ingredients | Constellation Brands vs. Brown Forman |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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