Correlation Between Icad and Remy Cointreau
Can any of the company-specific risk be diversified away by investing in both Icad 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 Icad and Remy Cointreau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between icad inc and Remy Cointreau SA, you can compare the effects of market volatilities on Icad 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 Icad with a short position of Remy Cointreau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icad and Remy Cointreau.
Diversification Opportunities for Icad and Remy Cointreau
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icad and Remy is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding icad inc 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 Icad 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 icad inc 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 Icad i.e., Icad and Remy Cointreau go up and down completely randomly.
Pair Corralation between Icad and Remy Cointreau
Given the investment horizon of 90 days icad inc is expected to generate 2.59 times more return on investment than Remy Cointreau. However, Icad is 2.59 times more volatile than Remy Cointreau SA. It trades about 0.12 of its potential returns per unit of risk. Remy Cointreau SA is currently generating about -0.09 per unit of risk. If you would invest 170.00 in icad inc on December 4, 2024 and sell it today you would earn a total of 71.00 from holding icad inc or generate 41.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
icad inc vs. Remy Cointreau SA
Performance |
Timeline |
icad inc |
Remy Cointreau SA |
Icad and Remy Cointreau Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Icad and Remy Cointreau
The main advantage of trading using opposite Icad and Remy Cointreau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icad 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 icad inc 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.Remy Cointreau vs. Diageo PLC ADR | Remy Cointreau vs. Pernod Ricard SA | Remy Cointreau vs. Treasury Wine Estates | Remy Cointreau vs. MGP Ingredients |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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