Correlation Between Mr Bricolage and Quadpack Industries

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

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

Diversification Opportunities for Mr Bricolage and Quadpack Industries

-0.88

Correlation Coefficient

Mr Bricolage  Quadpack Industries

Pay attention - limited upside

The 3 months correlation between ALMRB and Quadpack is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mr Bricolage and Quadpack Industries SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quadpack Industries and Mr Bricolage 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 Mr Bricolage are associated (or correlated) with Quadpack Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quadpack Industries has no effect on the direction of Mr Bricolage i.e., Mr Bricolage and Quadpack Industries go up and down completely randomly.

Pair Corralation between Mr Bricolage and Quadpack Industries

Assuming the 90 days trading horizon Mr Bricolage is expected to generate 0.44 times more return on investment than Quadpack Industries. However, Mr Bricolage is 2.27 times less risky than Quadpack Industries. It trades about 0.2 of its potential returns per unit of risk. Quadpack Industries SA is currently generating about -0.39 per unit of risk. If you would invest  818.00  in Mr Bricolage on February 6, 2024 and sell it today you would earn a total of  48.00  from holding Mr Bricolage or generate 5.87% return on investment over 90 days.

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

Mr Bricolage  vs.  Quadpack Industries SA

Mr Bricolage

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mr Bricolage are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, Mr Bricolage may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Quadpack Industries

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quadpack Industries SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Mr Bricolage and Quadpack Industries

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

The idea behind Mr Bricolage and Quadpack Industries 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..