Correlation Between Carrefour and BYD ELECTRONIC
Can any of the company-specific risk be diversified away by investing in both Carrefour and BYD ELECTRONIC 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 BYD ELECTRONIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carrefour SA and BYD ELECTRONIC, you can compare the effects of market volatilities on Carrefour and BYD ELECTRONIC 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 BYD ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carrefour and BYD ELECTRONIC.
Diversification Opportunities for Carrefour and BYD ELECTRONIC
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carrefour and BYD is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Carrefour SA and BYD ELECTRONIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD ELECTRONIC 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 BYD ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD ELECTRONIC has no effect on the direction of Carrefour i.e., Carrefour and BYD ELECTRONIC go up and down completely randomly.
Pair Corralation between Carrefour and BYD ELECTRONIC
Assuming the 90 days horizon Carrefour is expected to generate 23.86 times less return on investment than BYD ELECTRONIC. But when comparing it to its historical volatility, Carrefour SA is 2.56 times less risky than BYD ELECTRONIC. It trades about 0.0 of its potential returns per unit of risk. BYD ELECTRONIC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 253.00 in BYD ELECTRONIC on September 3, 2024 and sell it today you would earn a total of 161.00 from holding BYD ELECTRONIC or generate 63.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carrefour SA vs. BYD ELECTRONIC
Performance |
| Timeline |
| Carrefour SA |
| BYD ELECTRONIC |
Carrefour and BYD ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carrefour and BYD ELECTRONIC
The main advantage of trading using opposite Carrefour and BYD ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carrefour position performs unexpectedly, BYD ELECTRONIC 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 BYD ELECTRONIC will offset losses from the drop in BYD ELECTRONIC's long position.| Carrefour vs. Seven i Holdings | Carrefour vs. AHOLD DELHAIADR16 EO 25 | Carrefour vs. Loblaw Companies Limited | Carrefour vs. TESCO PLC LS 0633333 |
| BYD ELECTRONIC vs. RETAIL FOOD GROUP | BYD ELECTRONIC vs. MOLSON RS BEVERAGE | BYD ELECTRONIC vs. GEELY AUTOMOBILE | BYD ELECTRONIC vs. National Retail Properties |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |