Correlation Between Remy International and Ferrari NV
Can any of the company-specific risk be diversified away by investing in both Remy International and Ferrari NV 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 Remy International and Ferrari NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Remy International and Ferrari NV, you can compare the effects of market volatilities on Remy International and Ferrari NV 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 Remy International with a short position of Ferrari NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remy International and Ferrari NV.
Diversification Opportunities for Remy International and Ferrari NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Remy and Ferrari is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Remy International and Ferrari NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferrari NV and Remy International 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 Remy International are associated (or correlated) with Ferrari NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferrari NV has no effect on the direction of Remy International i.e., Remy International and Ferrari NV go up and down completely randomly.
Pair Corralation between Remy International and Ferrari NV
If you would invest (100.00) in Remy International on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Remy International or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Remy International vs. Ferrari NV
Performance |
| Timeline |
| Remy International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ferrari NV |
Remy International and Ferrari NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Remy International and Ferrari NV
The main advantage of trading using opposite Remy International and Ferrari NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Remy International position performs unexpectedly, Ferrari NV 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 Ferrari NV will offset losses from the drop in Ferrari NV's long position.| Remy International vs. National Vision Holdings | Remy International vs. Upper Street Marketing | Remy International vs. Sea | Remy International vs. CDW Corp |
| Ferrari NV vs. Volkswagen AG Pref | Ferrari NV vs. Volkswagen AG 110 | Ferrari NV vs. Porsche Automobil Holding | Ferrari NV vs. Bayerische Motoren Werke |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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