Correlation Between Casino Guichard-Perrach and Healthier Choices
Can any of the company-specific risk be diversified away by investing in both Casino Guichard-Perrach and Healthier Choices 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 Healthier Choices 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 Healthier Choices Management, you can compare the effects of market volatilities on Casino Guichard-Perrach and Healthier Choices 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 Healthier Choices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard-Perrach and Healthier Choices.
Diversification Opportunities for Casino Guichard-Perrach and Healthier Choices
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Casino and Healthier is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon Soci and Healthier Choices Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthier Choices 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 Healthier Choices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthier Choices has no effect on the direction of Casino Guichard-Perrach i.e., Casino Guichard-Perrach and Healthier Choices go up and down completely randomly.
Pair Corralation between Casino Guichard-Perrach and Healthier Choices
Assuming the 90 days horizon Casino Guichard Perrachon Socit is expected to under-perform the Healthier Choices. But the pink sheet apears to be less risky and, when comparing its historical volatility, Casino Guichard Perrachon Socit is 59.04 times less risky than Healthier Choices. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Healthier Choices Management is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 0.02 in Healthier Choices Management on September 3, 2024 and sell it today you would lose (0.02) from holding Healthier Choices Management or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.71% |
| Values | Daily Returns |
Casino Guichard Perrachon Soci vs. Healthier Choices Management
Performance |
| Timeline |
| Casino Guichard-Perrach |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Healthier Choices |
Casino Guichard-Perrach and Healthier Choices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casino Guichard-Perrach and Healthier Choices
The main advantage of trading using opposite Casino Guichard-Perrach and Healthier Choices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard-Perrach position performs unexpectedly, Healthier Choices 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 Healthier Choices will offset losses from the drop in Healthier Choices' 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 |
| Healthier Choices vs. Albertsons Companies | Healthier Choices vs. Sprouts Farmers Market | Healthier Choices vs. Krispy Kreme | Healthier Choices vs. Grocery Outlet Holding |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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