Correlation Between Remy Cointreau and Laurent Perrier

Can any of the company-specific risk be diversified away by investing in both Remy Cointreau and Laurent Perrier 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 Remy Cointreau and Laurent Perrier into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Remy Cointreau and Laurent Perrier, you can compare the effects of market volatilities on Remy Cointreau and Laurent Perrier 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 Remy Cointreau with a short position of Laurent Perrier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remy Cointreau and Laurent Perrier.

Diversification Opportunities for Remy Cointreau and Laurent Perrier

0.65

Correlation Coefficient

Remy Cointreau  Laurent Perrier

Poor diversification

The 3 months correlation between Remy and Laurent is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Remy Cointreau and Laurent Perrier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laurent Perrier and Remy Cointreau 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 Remy Cointreau are associated (or correlated) with Laurent Perrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laurent Perrier has no effect on the direction of Remy Cointreau i.e., Remy Cointreau and Laurent Perrier go up and down completely randomly.

Pair Corralation between Remy Cointreau and Laurent Perrier

If you would invest (100.00) in Laurent Perrier on September 14, 2024 and sell it today you would earn a total of  100.00  from holding Laurent Perrier or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	0.0%
Values	Daily Returns

Remy Cointreau  vs.  Laurent Perrier

Remy Cointreau

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Remy Cointreau are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Remy Cointreau is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Laurent Perrier

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Laurent Perrier has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Laurent Perrier is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Remy Cointreau and Laurent Perrier

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

The idea behind Remy Cointreau and Laurent Perrier 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.