Correlation Between Mon Courtier and Interparfums

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

By analyzing existing cross correlation between Mon Courtier Energie and Interparfums SA, you can compare the effects of market volatilities on Mon Courtier and Interparfums 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 Mon Courtier with a short position of Interparfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mon Courtier and Interparfums.

Diversification Opportunities for Mon Courtier and Interparfums

0.79

Correlation Coefficient

Mon Courtier  Interparfums

Poor diversification

The 3 months correlation between Mon and Interparfums is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Mon Courtier Energie and Interparfums SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interparfums SA and Mon Courtier 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 Mon Courtier Energie are associated (or correlated) with Interparfums. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interparfums SA has no effect on the direction of Mon Courtier i.e., Mon Courtier and Interparfums go up and down completely randomly.

Pair Corralation between Mon Courtier and Interparfums

Assuming the 90 days trading horizon Mon Courtier Energie is expected to generate 1.66 times more return on investment than Interparfums. However, Mon Courtier is 1.66 times more volatile than Interparfums SA. It trades about 0.18 of its potential returns per unit of risk. Interparfums SA is currently generating about 0.04 per unit of risk. If you would invest  440.00  in Mon Courtier Energie on April 23, 2025 and sell it today you would earn a total of  130.00  from holding Mon Courtier Energie or generate 29.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Mon Courtier Energie  vs.  Interparfums SA

Mon Courtier Energie

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mon Courtier Energie are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Mon Courtier reported solid returns over the last few months and may actually be approaching a breakup point.

Interparfums SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Interparfums SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Interparfums is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mon Courtier and Interparfums

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

The idea behind Mon Courtier Energie and Interparfums SA 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.