Correlation Between Retail Estates and Marie Brizard

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

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

Diversification Opportunities for Retail Estates and Marie Brizard

-0.64

Correlation Coefficient

Retail Estates  Marie Brizard

Excellent diversification

The 3 months correlation between Retail and Marie is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates NV 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 Retail Estates 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 Retail Estates NV 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 Retail Estates i.e., Retail Estates and Marie Brizard go up and down completely randomly.

Pair Corralation between Retail Estates and Marie Brizard

Assuming the 90 days horizon Retail Estates NV is expected to generate 0.76 times more return on investment than Marie Brizard. However, Retail Estates NV is 1.32 times less risky than Marie Brizard. It trades about 0.19 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.09 per unit of risk. If you would invest  5,704  in Retail Estates NV on April 24, 2025 and sell it today you would earn a total of  726.00  from holding Retail Estates NV or generate 12.73% return on investment over 90 days.

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

Retail Estates NV  vs.  Marie Brizard Wine

Retail Estates NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Retail Estates NV are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Retail Estates may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Marie Brizard Wine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marie Brizard Wine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Retail Estates and Marie Brizard

The main advantage of trading using opposite Retail Estates and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates 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 Retail Estates NV 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.