Correlation Between Casino Guichard and Carrefour
Can any of the company-specific risk be diversified away by investing in both Casino Guichard and Carrefour 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 and Carrefour 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 Carrefour SA PK, you can compare the effects of market volatilities on Casino Guichard and Carrefour 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 with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard and Carrefour.
Diversification Opportunities for Casino Guichard and Carrefour
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Casino and Carrefour is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon Soci and Carrefour SA PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA PK and Casino Guichard 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 Carrefour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carrefour SA PK has no effect on the direction of Casino Guichard i.e., Casino Guichard and Carrefour go up and down completely randomly.
Pair Corralation between Casino Guichard and Carrefour
If you would invest 274.00 in Carrefour SA PK on November 3, 2024 and sell it today you would earn a total of 5.00 from holding Carrefour SA PK or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Casino Guichard Perrachon Soci vs. Carrefour SA PK
Performance |
| Timeline |
| Casino Guichard Perr |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Carrefour SA PK |
Casino Guichard and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casino Guichard and Carrefour
The main advantage of trading using opposite Casino Guichard and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard position performs unexpectedly, Carrefour 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 Carrefour will offset losses from the drop in Carrefour's long position.| Casino Guichard vs. Carrefour SA | Casino Guichard vs. J Sainsbury plc | Casino Guichard vs. Om Holdings International | Casino Guichard vs. Carrefour SA PK |
| Carrefour vs. Kesko Oyj ADR | Carrefour vs. Carrefour SA | Carrefour vs. J Sainsbury plc | Carrefour vs. Om Holdings International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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