Correlation Between Carrefour and Onlineformapro
Can any of the company-specific risk be diversified away by investing in both Carrefour and Onlineformapro 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 Onlineformapro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carrefour SA and Onlineformapro SA, you can compare the effects of market volatilities on Carrefour and Onlineformapro 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 Onlineformapro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carrefour and Onlineformapro.
Diversification Opportunities for Carrefour and Onlineformapro
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carrefour and Onlineformapro is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Carrefour SA and Onlineformapro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onlineformapro SA 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 Onlineformapro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onlineformapro SA has no effect on the direction of Carrefour i.e., Carrefour and Onlineformapro go up and down completely randomly.
Pair Corralation between Carrefour and Onlineformapro
Assuming the 90 days horizon Carrefour SA is expected to under-perform the Onlineformapro. But the stock apears to be less risky and, when comparing its historical volatility, Carrefour SA is 3.62 times less risky than Onlineformapro. The stock trades about -0.03 of its potential returns per unit of risk. The Onlineformapro SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Onlineformapro SA on August 26, 2024 and sell it today you would lose (26.00) from holding Onlineformapro SA or give up 9.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.18% |
| Values | Daily Returns |
Carrefour SA vs. Onlineformapro SA
Performance |
| Timeline |
| Carrefour SA |
| Onlineformapro SA |
Carrefour and Onlineformapro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carrefour and Onlineformapro
The main advantage of trading using opposite Carrefour and Onlineformapro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carrefour position performs unexpectedly, Onlineformapro 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 Onlineformapro will offset losses from the drop in Onlineformapro's long position.| Carrefour vs. Danone SA | Carrefour vs. Renault SA | Carrefour vs. AXA SA | Carrefour vs. Compagnie de Saint Gobain |
| Onlineformapro vs. Txcom SA | Onlineformapro vs. Poujoulat SA | Onlineformapro vs. Vente Unique | Onlineformapro vs. Moulinvest |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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