Correlation Between Interparfums and Mon Courtier

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

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

Diversification Opportunities for Interparfums and Mon Courtier

0.78

Correlation Coefficient

Interparfums  Mon Courtier

Poor diversification

The 3 months correlation between Interparfums and Mon is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Interparfums SA and Mon Courtier Energie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mon Courtier Energie and Interparfums 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 Interparfums SA are associated (or correlated) with Mon Courtier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mon Courtier Energie has no effect on the direction of Interparfums i.e., Interparfums and Mon Courtier go up and down completely randomly.

Pair Corralation between Interparfums and Mon Courtier

Assuming the 90 days trading horizon Interparfums is expected to generate 6.16 times less return on investment than Mon Courtier. But when comparing it to its historical volatility, Interparfums SA is 1.65 times less risky than Mon Courtier. It trades about 0.05 of its potential returns per unit of risk. Mon Courtier Energie is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  436.00  in Mon Courtier Energie on April 24, 2025 and sell it today you would earn a total of  134.00  from holding Mon Courtier Energie or generate 30.73% return on investment over 90 days.

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

Interparfums SA  vs.  Mon Courtier Energie

Interparfums SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Interparfums SA are ranked lower than 4 (%) 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.

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 15 (%) 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.

Pair Trading with Interparfums and Mon Courtier

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

The idea behind Interparfums SA and Mon Courtier Energie 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.