Correlation Between Casino Guichard and J Sainsbury
Can any of the company-specific risk be diversified away by investing in both Casino Guichard and J Sainsbury 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 J Sainsbury 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 J Sainsbury PLC, you can compare the effects of market volatilities on Casino Guichard and J Sainsbury 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 J Sainsbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard and J Sainsbury.
Diversification Opportunities for Casino Guichard and J Sainsbury
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Casino and JSAIY is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon Soci and J Sainsbury PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Sainsbury PLC 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 J Sainsbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Sainsbury PLC has no effect on the direction of Casino Guichard i.e., Casino Guichard and J Sainsbury go up and down completely randomly.
Pair Corralation between Casino Guichard and J Sainsbury
If you would invest 673.00 in Casino Guichard Perrachon Socit on November 3, 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 Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Casino Guichard Perrachon Soci vs. J Sainsbury PLC
Performance |
| Timeline |
| Casino Guichard Perr |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| J Sainsbury PLC |
Casino Guichard and J Sainsbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casino Guichard and J Sainsbury
The main advantage of trading using opposite Casino Guichard and J Sainsbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard position performs unexpectedly, J Sainsbury 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 J Sainsbury will offset losses from the drop in J Sainsbury'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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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