Correlation Between Andrew Peller and Remy Cointreau

Can any of the company-specific risk be diversified away by investing in both Andrew Peller and Remy Cointreau 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 Andrew Peller and Remy Cointreau into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Andrew Peller Limited and Remy Cointreau SA, you can compare the effects of market volatilities on Andrew Peller and Remy Cointreau 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 Andrew Peller with a short position of Remy Cointreau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andrew Peller and Remy Cointreau.

Diversification Opportunities for Andrew Peller and Remy Cointreau

0.18

Correlation Coefficient

Andrew Peller  Remy Cointreau

Average diversification

The 3 months correlation between Andrew and Remy is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Andrew Peller Limited and Remy Cointreau SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remy Cointreau SA and Andrew Peller 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 Andrew Peller Limited are associated (or correlated) with Remy Cointreau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remy Cointreau SA has no effect on the direction of Andrew Peller i.e., Andrew Peller and Remy Cointreau go up and down completely randomly.

Pair Corralation between Andrew Peller and Remy Cointreau

Assuming the 90 days horizon Andrew Peller Limited is expected to under-perform the Remy Cointreau. But the pink sheet apears to be less risky and, when comparing its historical volatility, Andrew Peller Limited is 3.48 times less risky than Remy Cointreau. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Remy Cointreau SA is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  576.00  in Remy Cointreau SA on September 13, 2024 and sell it today you would earn a total of  87.00  from holding Remy Cointreau SA or generate 15.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Andrew Peller Limited  vs.  Remy Cointreau SA

Andrew Peller Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Andrew Peller Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Andrew Peller is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Remy Cointreau SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Remy Cointreau SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Remy Cointreau is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Andrew Peller and Remy Cointreau

The main advantage of trading using opposite Andrew Peller and Remy Cointreau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andrew Peller position performs unexpectedly, Remy Cointreau 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 Remy Cointreau will offset losses from the drop in Remy Cointreau's long position.

The idea behind Andrew Peller Limited and Remy Cointreau SA 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.