Correlation Between Inter Parfums and Marzetti

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

By analyzing existing cross correlation between Inter Parfums and The Marzetti, you can compare the effects of market volatilities on Inter Parfums and Marzetti 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 Marzetti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Parfums and Marzetti.

Diversification Opportunities for Inter Parfums and Marzetti

0.12

Correlation Coefficient

Inter Parfums  Marzetti

Average diversification

The 3 months correlation between Inter and Marzetti is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Inter Parfums and The Marzetti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marzetti 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 Marzetti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marzetti has no effect on the direction of Inter Parfums i.e., Inter Parfums and Marzetti go up and down completely randomly.

Pair Corralation between Inter Parfums and Marzetti

Given the investment horizon of 90 days Inter Parfums is expected to generate 233.71 times less return on investment than Marzetti. In addition to that, Inter Parfums is 1.17 times more volatile than The Marzetti. It trades about 0.0 of its total potential returns per unit of risk. The Marzetti is currently generating about 0.11 per unit of volatility. If you would invest  16,057  in The Marzetti on May 6, 2025 and sell it today you would earn a total of  1,628  from holding The Marzetti or generate 10.14% return on investment over 90 days.

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

Inter Parfums  vs.  The Marzetti

Inter Parfums

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inter Parfums has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Inter Parfums is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Marzetti

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Marzetti are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Marzetti may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Inter Parfums and Marzetti

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

The idea behind Inter Parfums and The Marzetti 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 Global Correlations module to find global opportunities by holding instruments from different markets.