Correlation Between Lacroix Group and Marie Brizard

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

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

Diversification Opportunities for Lacroix Group and Marie Brizard

-0.11

Correlation Coefficient

Lacroix Group  Marie Brizard

Good diversification

The 3 months correlation between Lacroix and Marie is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lacroix Group SA 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 Lacroix Group 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 Lacroix Group SA 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 Lacroix Group i.e., Lacroix Group and Marie Brizard go up and down completely randomly.

Pair Corralation between Lacroix Group and Marie Brizard

Assuming the 90 days trading horizon Lacroix Group SA is expected to generate 1.79 times more return on investment than Marie Brizard. However, Lacroix Group is 1.79 times more volatile than Marie Brizard Wine. It trades about 0.05 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.2 per unit of risk. If you would invest  910.00  in Lacroix Group SA on December 23, 2024 and sell it today you would earn a total of  56.00  from holding Lacroix Group SA or generate 6.15% return on investment over 90 days.

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

Lacroix Group SA  vs.  Marie Brizard Wine

Lacroix Group SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lacroix Group SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Lacroix Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Marie Brizard Wine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marie Brizard Wine has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Lacroix Group and Marie Brizard

The main advantage of trading using opposite Lacroix Group and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lacroix Group 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.

The idea behind Lacroix Group SA and Marie Brizard Wine 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..