Correlation Between Carrefour and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Carrefour and GRIFFIN MINING 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 GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carrefour SA and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Carrefour and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carrefour and GRIFFIN MINING.
Diversification Opportunities for Carrefour and GRIFFIN MINING
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Carrefour and GRIFFIN is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Carrefour SA and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Carrefour i.e., Carrefour and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Carrefour and GRIFFIN MINING
Assuming the 90 days horizon Carrefour SA is expected to generate 0.99 times more return on investment than GRIFFIN MINING. However, Carrefour SA is 1.01 times less risky than GRIFFIN MINING. It trades about 0.03 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about -0.02 per unit of risk. If you would invest 1,448 in Carrefour SA on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Carrefour SA or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Carrefour SA vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Carrefour SA |
| GRIFFIN MINING LTD |
Carrefour and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carrefour and GRIFFIN MINING
The main advantage of trading using opposite Carrefour and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carrefour position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Carrefour vs. Jacquet Metal Service | Carrefour vs. Zijin Mining Group | Carrefour vs. UMC Electronics Co | Carrefour vs. BYD ELECTRONIC |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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