Correlation Between Inter Parfums and Coty
Can any of the company-specific risk be diversified away by investing in both Inter Parfums and Coty 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 Inter Parfums and Coty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Parfums and Coty Inc, you can compare the effects of market volatilities on Inter Parfums and Coty 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 Inter Parfums with a short position of Coty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Parfums and Coty.
Diversification Opportunities for Inter Parfums and Coty
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inter and Coty is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Inter Parfums and Coty Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coty Inc and Inter Parfums 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 Inter Parfums are associated (or correlated) with Coty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coty Inc has no effect on the direction of Inter Parfums i.e., Inter Parfums and Coty go up and down completely randomly.
Pair Corralation between Inter Parfums and Coty
Given the investment horizon of 90 days Inter Parfums is expected to under-perform the Coty. But the stock apears to be less risky and, when comparing its historical volatility, Inter Parfums is 1.33 times less risky than Coty. The stock trades about -0.26 of its potential returns per unit of risk. The Coty Inc is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 432.00 in Coty Inc on September 6, 2025 and sell it today you would lose (93.00) from holding Coty Inc or give up 21.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Parfums vs. Coty Inc
Performance |
| Timeline |
| Inter Parfums |
| Coty Inc |
Inter Parfums and Coty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Parfums and Coty
The main advantage of trading using opposite Inter Parfums and Coty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Parfums position performs unexpectedly, Coty 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 Coty will offset losses from the drop in Coty's long position.| Inter Parfums vs. Federal Home Loan | Inter Parfums vs. Smith Douglas Homes | Inter Parfums vs. Neinor Homes SA | Inter Parfums vs. Xenia Hotels Resorts |
| Coty vs. Brookfield Office Properties | Coty vs. Sunny Optical Technology | Coty vs. Slate Office REIT | Coty vs. ARIA Wireless Systems |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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