Correlation Between Casino Guichard and 21Shares Polkadot
Can any of the company-specific risk be diversified away by investing in both Casino Guichard and 21Shares Polkadot 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 21Shares Polkadot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casino Guichard Perrachon and 21Shares Polkadot ETP, you can compare the effects of market volatilities on Casino Guichard and 21Shares Polkadot 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 21Shares Polkadot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard and 21Shares Polkadot.
Diversification Opportunities for Casino Guichard and 21Shares Polkadot
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Casino and 21Shares is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon and 21Shares Polkadot ETP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Polkadot ETP 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 are associated (or correlated) with 21Shares Polkadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Polkadot ETP has no effect on the direction of Casino Guichard i.e., Casino Guichard and 21Shares Polkadot go up and down completely randomly.
Pair Corralation between Casino Guichard and 21Shares Polkadot
Assuming the 90 days horizon Casino Guichard Perrachon is expected to under-perform the 21Shares Polkadot. But the stock apears to be less risky and, when comparing its historical volatility, Casino Guichard Perrachon is 1.14 times less risky than 21Shares Polkadot. The stock trades about -0.15 of its potential returns per unit of risk. The 21Shares Polkadot ETP is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 334.00 in 21Shares Polkadot ETP on September 2, 2024 and sell it today you would earn a total of 50.00 from holding 21Shares Polkadot ETP or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Casino Guichard Perrachon vs. 21Shares Polkadot ETP
Performance |
| Timeline |
| Casino Guichard Perrachon |
| 21Shares Polkadot ETP |
Casino Guichard and 21Shares Polkadot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casino Guichard and 21Shares Polkadot
The main advantage of trading using opposite Casino Guichard and 21Shares Polkadot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard position performs unexpectedly, 21Shares Polkadot 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 21Shares Polkadot will offset losses from the drop in 21Shares Polkadot's long position.| Casino Guichard vs. Danone SA | Casino Guichard vs. Renault SA | Casino Guichard vs. AXA SA | Casino Guichard vs. Compagnie de Saint Gobain |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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