Correlation Between Remy Cointreau and Tiger Reef

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

By analyzing existing cross correlation between Remy Cointreau SA and Tiger Reef, you can compare the effects of market volatilities on Remy Cointreau and Tiger Reef 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 Tiger Reef. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remy Cointreau and Tiger Reef.

Diversification Opportunities for Remy Cointreau and Tiger Reef

0.0

Correlation Coefficient

Remy Cointreau  Tiger Reef

Pay attention - limited upside

The 3 months correlation between Remy and Tiger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Remy Cointreau SA and Tiger Reef in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiger Reef 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 SA are associated (or correlated) with Tiger Reef. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiger Reef has no effect on the direction of Remy Cointreau i.e., Remy Cointreau and Tiger Reef go up and down completely randomly.

Pair Corralation between Remy Cointreau and Tiger Reef

If you would invest  0.01  in Tiger Reef on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Tiger Reef or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Remy Cointreau SA  vs.  Tiger Reef

Remy Cointreau SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Remy Cointreau SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of 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.

Tiger Reef

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Remy Cointreau and Tiger Reef

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

The idea behind Remy Cointreau SA and Tiger Reef 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.