Correlation Between Casino Guichard-Perrach and Sendas Distribuidora
Can any of the company-specific risk be diversified away by investing in both Casino Guichard-Perrach and Sendas Distribuidora 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 Casino Guichard-Perrach and Sendas Distribuidora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casino Guichard Perrachon Socit and Sendas Distribuidora SA, you can compare the effects of market volatilities on Casino Guichard-Perrach and Sendas Distribuidora 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 Casino Guichard-Perrach with a short position of Sendas Distribuidora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard-Perrach and Sendas Distribuidora.
Diversification Opportunities for Casino Guichard-Perrach and Sendas Distribuidora
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Casino and Sendas is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon Soci and Sendas Distribuidora SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sendas Distribuidora and Casino Guichard-Perrach 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 Casino Guichard Perrachon Socit are associated (or correlated) with Sendas Distribuidora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sendas Distribuidora has no effect on the direction of Casino Guichard-Perrach i.e., Casino Guichard-Perrach and Sendas Distribuidora go up and down completely randomly.
Pair Corralation between Casino Guichard-Perrach and Sendas Distribuidora
If you would invest 673.00 in Casino Guichard Perrachon Socit on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Casino Guichard Perrachon Socit or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Casino Guichard Perrachon Soci vs. Sendas Distribuidora SA
Performance |
| Timeline |
| Casino Guichard-Perrach |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sendas Distribuidora |
Casino Guichard-Perrach and Sendas Distribuidora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casino Guichard-Perrach and Sendas Distribuidora
The main advantage of trading using opposite Casino Guichard-Perrach and Sendas Distribuidora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard-Perrach position performs unexpectedly, Sendas Distribuidora 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 Sendas Distribuidora will offset losses from the drop in Sendas Distribuidora's long position.| Casino Guichard-Perrach vs. Carrefour SA | Casino Guichard-Perrach vs. J Sainsbury plc | Casino Guichard-Perrach vs. Om Holdings International | Casino Guichard-Perrach vs. Carrefour SA PK |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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