Correlation Between Washington Mutual and Casino Guichard
Can any of the company-specific risk be diversified away by investing in both Washington Mutual and Casino Guichard 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 Washington Mutual and Casino Guichard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Mutual Investors and Casino Guichard Perrachon Socit, you can compare the effects of market volatilities on Washington Mutual and Casino Guichard 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 Washington Mutual with a short position of Casino Guichard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Casino Guichard.
Diversification Opportunities for Washington Mutual and Casino Guichard
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Washington and Casino is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and Casino Guichard Perrachon Soci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casino Guichard Perr and Washington Mutual 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 Washington Mutual Investors are associated (or correlated) with Casino Guichard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casino Guichard Perr has no effect on the direction of Washington Mutual i.e., Washington Mutual and Casino Guichard go up and down completely randomly.
Pair Corralation between Washington Mutual and Casino Guichard
If you would invest 6,150 in Washington Mutual Investors on November 3, 2024 and sell it today you would earn a total of 251.00 from holding Washington Mutual Investors or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Washington Mutual Investors vs. Casino Guichard Perrachon Soci
Performance |
| Timeline |
| Washington Mutual |
| Casino Guichard Perr |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Washington Mutual and Casino Guichard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and Casino Guichard
The main advantage of trading using opposite Washington Mutual and Casino Guichard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual position performs unexpectedly, Casino Guichard 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 Casino Guichard will offset losses from the drop in Casino Guichard's long position.| Washington Mutual vs. Neuberger Berman Real | Washington Mutual vs. Dunham Real Estate | Washington Mutual vs. Real Estate Ultrasector | Washington Mutual vs. Texton Property |
| Casino Guichard vs. Carrefour SA | Casino Guichard vs. J Sainsbury plc | Casino Guichard vs. Om Holdings International | Casino Guichard vs. Carrefour SA PK |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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