Correlation Between Marie Brizard and X Trade

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

Diversification Opportunities for Marie Brizard and X Trade

0.59

Correlation Coefficient

Marie Brizard  X Trade

Very weak diversification

The 3 months correlation between Marie and XTB is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers 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 X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of Marie Brizard i.e., Marie Brizard and X Trade go up and down completely randomly.

Pair Corralation between Marie Brizard and X Trade

Assuming the 90 days trading horizon Marie Brizard Wine is expected to under-perform the X Trade. But the stock apears to be less risky and, when comparing its historical volatility, Marie Brizard Wine is 1.29 times less risky than X Trade. The stock trades about -0.13 of its potential returns per unit of risk. The X Trade Brokers is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  6,746  in X Trade Brokers on December 20, 2024 and sell it today you would earn a total of  24.00  from holding X Trade Brokers or generate 0.36% return on investment over 90 days.

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

Marie Brizard Wine  vs.  X Trade Brokers

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.

X Trade Brokers

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in X Trade Brokers are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, X Trade is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Marie Brizard and X Trade

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

The idea behind Marie Brizard Wine and X Trade Brokers 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.