Correlation Between Carrefour and Caisse Rgionale
Can any of the company-specific risk be diversified away by investing in both Carrefour and Caisse Rgionale 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 Carrefour and Caisse Rgionale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carrefour SA and Caisse Rgionale de, you can compare the effects of market volatilities on Carrefour and Caisse Rgionale 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 Carrefour with a short position of Caisse Rgionale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carrefour and Caisse Rgionale.
Diversification Opportunities for Carrefour and Caisse Rgionale
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carrefour and Caisse is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Carrefour SA and Caisse Rgionale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Rgionale de and Carrefour 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 Carrefour SA are associated (or correlated) with Caisse Rgionale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caisse Rgionale de has no effect on the direction of Carrefour i.e., Carrefour and Caisse Rgionale go up and down completely randomly.
Pair Corralation between Carrefour and Caisse Rgionale
Assuming the 90 days horizon Carrefour SA is expected to under-perform the Caisse Rgionale. In addition to that, Carrefour is 2.01 times more volatile than Caisse Rgionale de. It trades about -0.13 of its total potential returns per unit of risk. Caisse Rgionale de is currently generating about 0.25 per unit of volatility. If you would invest 7,250 in Caisse Rgionale de on December 9, 2024 and sell it today you would earn a total of 460.00 from holding Caisse Rgionale de or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carrefour SA vs. Caisse Rgionale de
Performance |
| Timeline |
| Carrefour SA |
| Caisse Rgionale de |
Carrefour and Caisse Rgionale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carrefour and Caisse Rgionale
The main advantage of trading using opposite Carrefour and Caisse Rgionale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carrefour position performs unexpectedly, Caisse Rgionale 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 Caisse Rgionale will offset losses from the drop in Caisse Rgionale's long position.| Carrefour vs. Danone SA | ||
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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