Correlation Between Casino Guichard-Perrach and Seven I
Can any of the company-specific risk be diversified away by investing in both Casino Guichard-Perrach and Seven I 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 Seven I 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 Seven i Holdings, you can compare the effects of market volatilities on Casino Guichard-Perrach and Seven I 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 Seven I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard-Perrach and Seven I.
Diversification Opportunities for Casino Guichard-Perrach and Seven I
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Casino and Seven is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon Soci and Seven i Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seven i Holdings 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 Seven I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seven i Holdings has no effect on the direction of Casino Guichard-Perrach i.e., Casino Guichard-Perrach and Seven I go up and down completely randomly.
Pair Corralation between Casino Guichard-Perrach and Seven I
Assuming the 90 days horizon Casino Guichard Perrachon Socit is expected to under-perform the Seven I. In addition to that, Casino Guichard-Perrach is 1.8 times more volatile than Seven i Holdings. It trades about -0.02 of its total potential returns per unit of risk. Seven i Holdings is currently generating about 0.03 per unit of volatility. If you would invest 1,342 in Seven i Holdings on September 3, 2024 and sell it today you would earn a total of 387.00 from holding Seven i Holdings or generate 28.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.71% |
| Values | Daily Returns |
Casino Guichard Perrachon Soci vs. Seven i Holdings
Performance |
| Timeline |
| Casino Guichard-Perrach |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Seven i Holdings |
Casino Guichard-Perrach and Seven I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casino Guichard-Perrach and Seven I
The main advantage of trading using opposite Casino Guichard-Perrach and Seven I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard-Perrach position performs unexpectedly, Seven I 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 Seven I will offset losses from the drop in Seven I'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 |
| Seven I vs. Koninklijke Ahold Delhaize | Seven I vs. Weis Markets | Seven I vs. Albertsons Companies | Seven I vs. Dingdong ADR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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