Correlation Between Marie Brizard and Hawesko Holding

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

Diversification Opportunities for Marie Brizard and Hawesko Holding

-0.27

Correlation Coefficient

Marie Brizard  Hawesko Holding

Very good diversification

The 3 months correlation between Marie and Hawesko is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine and Hawesko Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawesko Holding AG 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 Hawesko Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawesko Holding AG has no effect on the direction of Marie Brizard i.e., Marie Brizard and Hawesko Holding go up and down completely randomly.

Pair Corralation between Marie Brizard and Hawesko Holding

Assuming the 90 days horizon Marie Brizard Wine is expected to under-perform the Hawesko Holding. But the stock apears to be less risky and, when comparing its historical volatility, Marie Brizard Wine is 4.85 times less risky than Hawesko Holding. The stock trades about -0.17 of its potential returns per unit of risk. The Hawesko Holding AG is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  2,240  in Hawesko Holding AG on September 26, 2024 and sell it today you would earn a total of  530.00  from holding Hawesko Holding AG or generate 23.66% return on investment over 90 days.

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

Marie Brizard Wine  vs.  Hawesko Holding AG

Marie Brizard Wine

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Marie Brizard Wine are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Marie Brizard is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Hawesko Holding AG

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hawesko Holding AG are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hawesko Holding may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Marie Brizard and Hawesko Holding

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

The idea behind Marie Brizard Wine and Hawesko Holding AG 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.