Correlation Between Scandic Hotels and Marie Brizard

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

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

Diversification Opportunities for Scandic Hotels and Marie Brizard

0.19

Correlation Coefficient

Scandic Hotels  Marie Brizard

Average diversification

The 3 months correlation between Scandic and Marie is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Scandic Hotels Group 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 Scandic Hotels 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 Scandic Hotels Group 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 Scandic Hotels i.e., Scandic Hotels and Marie Brizard go up and down completely randomly.

Pair Corralation between Scandic Hotels and Marie Brizard

Assuming the 90 days horizon Scandic Hotels Group is expected to generate 1.49 times more return on investment than Marie Brizard. However, Scandic Hotels is 1.49 times more volatile than Marie Brizard Wine. It trades about 0.07 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.05 per unit of risk. If you would invest  338.00  in Scandic Hotels Group on March 20, 2025 and sell it today you would earn a total of  334.00  from holding Scandic Hotels Group or generate 98.82% return on investment over 90 days.

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

Scandic Hotels Group  vs.  Marie Brizard Wine

Scandic Hotels Group

Risk-Adjusted Performance

Weak

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

Marie Brizard Wine

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Marie Brizard Wine are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Marie Brizard may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Scandic Hotels and Marie Brizard

The main advantage of trading using opposite Scandic Hotels and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandic Hotels 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 Scandic Hotels Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.