Correlation Between Marie Brizard and Hapag Lloyd

Can any of the company-specific risk be diversified away by investing in both Marie Brizard and Hapag Lloyd 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 Marie Brizard and Hapag Lloyd into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Marie Brizard Wine and Hapag Lloyd AG, you can compare the effects of market volatilities on Marie Brizard and Hapag Lloyd 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 Marie Brizard with a short position of Hapag Lloyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and Hapag Lloyd.

Diversification Opportunities for Marie Brizard and Hapag Lloyd

0.27

Correlation Coefficient

Marie Brizard  Hapag Lloyd

Modest diversification

The 3 months correlation between Marie and Hapag is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Hapag Lloyd AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hapag Lloyd AG and Marie Brizard 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 Marie Brizard Wine are associated (or correlated) with Hapag Lloyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hapag Lloyd AG has no effect on the direction of Marie Brizard i.e., Marie Brizard and Hapag Lloyd go up and down completely randomly.

Pair Corralation between Marie Brizard and Hapag Lloyd

Assuming the 90 days trading horizon Marie Brizard Wine is expected to generate 0.39 times more return on investment than Hapag Lloyd. However, Marie Brizard Wine is 2.54 times less risky than Hapag Lloyd. It trades about -0.15 of its potential returns per unit of risk. Hapag Lloyd AG is currently generating about -0.32 per unit of risk. If you would invest  378.00  in Marie Brizard Wine on October 23, 2024 and sell it today you would lose (10.00) from holding Marie Brizard Wine or give up 2.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.12%
Values	Daily Returns

Marie Brizard Wine  vs.  Hapag Lloyd AG

Marie Brizard Wine

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marie Brizard Wine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Marie Brizard is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Hapag Lloyd AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hapag Lloyd AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Marie Brizard and Hapag Lloyd

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

The idea behind Marie Brizard Wine and Hapag Lloyd AG 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.