Correlation Between Marie Brizard and Exail Technologies

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

Diversification Opportunities for Marie Brizard and Exail Technologies

-0.86

Correlation Coefficient

Marie Brizard  Exail Technologies

Pay attention - limited upside

The 3 months correlation between Marie and Exail is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Exail Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exail Technologies 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 Exail Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exail Technologies has no effect on the direction of Marie Brizard i.e., Marie Brizard and Exail Technologies go up and down completely randomly.

Pair Corralation between Marie Brizard and Exail Technologies

Assuming the 90 days trading horizon Marie Brizard Wine is expected to under-perform the Exail Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Marie Brizard Wine is 1.95 times less risky than Exail Technologies. The stock trades about -0.09 of its potential returns per unit of risk. The Exail Technologies SA is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  1,740  in Exail Technologies SA on December 29, 2024 and sell it today you would earn a total of  2,185  from holding Exail Technologies SA or generate 125.57% 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.  Exail Technologies SA

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 latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Exail Technologies

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Exail Technologies SA are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Exail Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marie Brizard and Exail Technologies

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

The idea behind Marie Brizard Wine and Exail Technologies 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.