Correlation Between Sendas Distribuidora and Carrefour
Can any of the company-specific risk be diversified away by investing in both Sendas Distribuidora and Carrefour 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 Sendas Distribuidora and Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sendas Distribuidora SA and Carrefour SA PK, you can compare the effects of market volatilities on Sendas Distribuidora and Carrefour 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 Sendas Distribuidora with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sendas Distribuidora and Carrefour.
Diversification Opportunities for Sendas Distribuidora and Carrefour
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sendas and Carrefour is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sendas Distribuidora SA and Carrefour SA PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA PK and Sendas Distribuidora 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 Sendas Distribuidora SA are associated (or correlated) with Carrefour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carrefour SA PK has no effect on the direction of Sendas Distribuidora i.e., Sendas Distribuidora and Carrefour go up and down completely randomly.
Pair Corralation between Sendas Distribuidora and Carrefour
Given the investment horizon of 90 days Sendas Distribuidora SA is expected to generate 1.24 times more return on investment than Carrefour. However, Sendas Distribuidora is 1.24 times more volatile than Carrefour SA PK. It trades about -0.02 of its potential returns per unit of risk. Carrefour SA PK is currently generating about -0.05 per unit of risk. If you would invest 657.00 in Sendas Distribuidora SA on August 28, 2024 and sell it today you would lose (12.00) from holding Sendas Distribuidora SA or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sendas Distribuidora SA vs. Carrefour SA PK
Performance |
| Timeline |
| Sendas Distribuidora |
| Carrefour SA PK |
Sendas Distribuidora and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sendas Distribuidora and Carrefour
The main advantage of trading using opposite Sendas Distribuidora and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sendas Distribuidora position performs unexpectedly, Carrefour 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 Carrefour will offset losses from the drop in Carrefour's long position.| Sendas Distribuidora vs. Village Super Market | Sendas Distribuidora vs. Weis Markets | Sendas Distribuidora vs. Ingles Markets Incorporated | Sendas Distribuidora vs. Grocery Outlet Holding |
| Carrefour vs. Natural Grocers by | Carrefour vs. Grocery Outlet Holding | Carrefour vs. Village Super Market | Carrefour vs. Ingles Markets Incorporated |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |