Correlation Between Marie Brizard and Bilendi

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

Diversification Opportunities for Marie Brizard and Bilendi

0.18

Correlation Coefficient

Marie Brizard  Bilendi

Average diversification

The 3 months correlation between Marie and Bilendi is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Bilendi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilendi 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 Bilendi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilendi has no effect on the direction of Marie Brizard i.e., Marie Brizard and Bilendi go up and down completely randomly.

Pair Corralation between Marie Brizard and Bilendi

Assuming the 90 days trading horizon Marie Brizard Wine is expected to generate 0.68 times more return on investment than Bilendi. However, Marie Brizard Wine is 1.48 times less risky than Bilendi. It trades about -0.02 of its potential returns per unit of risk. Bilendi is currently generating about -0.13 per unit of risk. If you would invest  399.00  in Marie Brizard Wine on September 5, 2024 and sell it today you would lose (11.00) from holding Marie Brizard Wine or give up 2.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Marie Brizard Wine  vs.  Bilendi

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. Despite somewhat strong basic indicators, Marie Brizard is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bilendi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bilendi 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 January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Marie Brizard and Bilendi

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

The idea behind Marie Brizard Wine and Bilendi 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.