Correlation Between Cnova NV and Rallye SA
Can any of the company-specific risk be diversified away by investing in both Cnova NV and Rallye SA 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 Cnova NV and Rallye SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cnova NV and Rallye SA, you can compare the effects of market volatilities on Cnova NV and Rallye SA 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 Cnova NV with a short position of Rallye SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cnova NV and Rallye SA.
Diversification Opportunities for Cnova NV and Rallye SA
Pay attention - limited upside
The 3 months correlation between Cnova and Rallye is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cnova NV and Rallye SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rallye SA and Cnova NV 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 Cnova NV are associated (or correlated) with Rallye SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rallye SA has no effect on the direction of Cnova NV i.e., Cnova NV and Rallye SA go up and down completely randomly.
Pair Corralation between Cnova NV and Rallye SA
If you would invest 13.00 in Cnova NV on September 3, 2024 and sell it today you would earn a total of 67.00 from holding Cnova NV or generate 515.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cnova NV vs. Rallye SA
Performance |
| Timeline |
| Cnova NV |
| Rallye SA |
Cnova NV and Rallye SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cnova NV and Rallye SA
The main advantage of trading using opposite Cnova NV and Rallye SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cnova NV position performs unexpectedly, Rallye SA 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 Rallye SA will offset losses from the drop in Rallye SA's long position.| Cnova NV vs. Casino Guichard Perrachon | Cnova NV vs. Rallye SA | Cnova NV vs. Carmila SA | Cnova NV vs. Burelle SA |
| Rallye SA vs. Casino Guichard Perrachon | Rallye SA vs. Lagardere SCA | Rallye SA vs. Mtropole Tlvision SA | Rallye SA vs. Mercialys SA |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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