Correlation Between FNP Technologies and Marie Brizard

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

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

Diversification Opportunities for FNP Technologies and Marie Brizard

0.0

Correlation Coefficient

FNP Technologies  Marie Brizard

Pay attention - limited upside

The 3 months correlation between FNP and Marie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FNP Technologies 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 FNP Technologies 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 FNP Technologies 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 FNP Technologies i.e., FNP Technologies and Marie Brizard go up and down completely randomly.

Pair Corralation between FNP Technologies and Marie Brizard

If you would invest  6.00  in FNP Technologies SA on December 23, 2024 and sell it today you would earn a total of  0.00  from holding FNP Technologies SA or generate 0.0% return on investment over 90 days.

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

FNP Technologies SA  vs.  Marie Brizard Wine

FNP Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days FNP Technologies SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, FNP Technologies is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

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 FNP Technologies and Marie Brizard

The main advantage of trading using opposite FNP Technologies and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNP Technologies 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 FNP Technologies 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.