Correlation Between Marie Brizard and Bank Polska

Can any of the company-specific risk be diversified away by investing in both Marie Brizard and Bank Polska 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 Bank Polska 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 Bank Polska Kasa, you can compare the effects of market volatilities on Marie Brizard and Bank Polska 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 Bank Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and Bank Polska.

Diversification Opportunities for Marie Brizard and Bank Polska

-0.84

Correlation Coefficient

Marie Brizard  Bank Polska

Pay attention - limited upside

The 3 months correlation between Marie and Bank is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Bank Polska Kasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Polska Kasa 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 Bank Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Polska Kasa has no effect on the direction of Marie Brizard i.e., Marie Brizard and Bank Polska go up and down completely randomly.

Pair Corralation between Marie Brizard and Bank Polska

Assuming the 90 days trading horizon Marie Brizard Wine is expected to under-perform the Bank Polska. But the stock apears to be less risky and, when comparing its historical volatility, Marie Brizard Wine is 1.23 times less risky than Bank Polska. The stock trades about -0.21 of its potential returns per unit of risk. The Bank Polska Kasa is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  13,790  in Bank Polska Kasa on December 29, 2024 and sell it today you would earn a total of  4,260  from holding Bank Polska Kasa or generate 30.89% return on investment over 90 days.

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

Marie Brizard Wine  vs.  Bank Polska Kasa

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. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Bank Polska Kasa

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bank Polska Kasa are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Bank Polska reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marie Brizard and Bank Polska

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

The idea behind Marie Brizard Wine and Bank Polska Kasa 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 CEOs Directory module to screen CEOs from public companies around the world.