Correlation Between Rémy Cointreau and HEALTHCARE REAL

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

By analyzing existing cross correlation between Rmy Cointreau SA and HEALTHCARE REAL A, you can compare the effects of market volatilities on Rémy Cointreau and HEALTHCARE REAL 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 Rémy Cointreau with a short position of HEALTHCARE REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rémy Cointreau and HEALTHCARE REAL.

Diversification Opportunities for Rémy Cointreau and HEALTHCARE REAL

0.31

Correlation Coefficient

Rémy Cointreau  HEALTHCARE REAL

Weak diversification

The 3 months correlation between Rémy and HEALTHCARE is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Rmy Cointreau SA and HEALTHCARE REAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHCARE REAL A and Rémy 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 Rmy Cointreau SA are associated (or correlated) with HEALTHCARE REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHCARE REAL A has no effect on the direction of Rémy Cointreau i.e., Rémy Cointreau and HEALTHCARE REAL go up and down completely randomly.

Pair Corralation between Rémy Cointreau and HEALTHCARE REAL

Assuming the 90 days horizon Rmy Cointreau SA is expected to under-perform the HEALTHCARE REAL. In addition to that, Rémy Cointreau is 1.8 times more volatile than HEALTHCARE REAL A. It trades about -0.16 of its total potential returns per unit of risk. HEALTHCARE REAL A is currently generating about -0.04 per unit of volatility. If you would invest  1,592  in HEALTHCARE REAL A on December 27, 2024 and sell it today you would lose (62.00) from holding HEALTHCARE REAL A or give up 3.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	92.06%
Values	Daily Returns

Rmy Cointreau SA  vs.  HEALTHCARE REAL A

Rmy Cointreau SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rmy Cointreau SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

HEALTHCARE REAL A

Risk-Adjusted Performance

Very Weak

Over the last 90 days HEALTHCARE REAL A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HEALTHCARE REAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Rémy Cointreau and HEALTHCARE REAL

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

The idea behind Rmy Cointreau SA and HEALTHCARE REAL A 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.