Correlation Between Casino Guichard and Vente Unique
Can any of the company-specific risk be diversified away by investing in both Casino Guichard and Vente Unique 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 Vente Unique 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 Vente Unique, you can compare the effects of market volatilities on Casino Guichard and Vente Unique 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 Vente Unique. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard and Vente Unique.
Diversification Opportunities for Casino Guichard and Vente Unique
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Casino and Vente is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon and Vente Unique in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vente Unique 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 Vente Unique. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vente Unique has no effect on the direction of Casino Guichard i.e., Casino Guichard and Vente Unique go up and down completely randomly.
Pair Corralation between Casino Guichard and Vente Unique
Assuming the 90 days horizon Casino Guichard Perrachon is expected to under-perform the Vente Unique. In addition to that, Casino Guichard is 3.01 times more volatile than Vente Unique. It trades about -0.11 of its total potential returns per unit of risk. Vente Unique is currently generating about -0.06 per unit of volatility. If you would invest 1,340 in Vente Unique on November 27, 2024 and sell it today you would lose (105.00) from holding Vente Unique or give up 7.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Casino Guichard Perrachon vs. Vente Unique
Performance |
| Timeline |
| Casino Guichard Perrachon |
| Vente Unique |
Casino Guichard and Vente Unique Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casino Guichard and Vente Unique
The main advantage of trading using opposite Casino Guichard and Vente Unique positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard position performs unexpectedly, Vente Unique 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 Vente Unique will offset losses from the drop in Vente Unique's long position.| Casino Guichard vs. Carrefour SA | Casino Guichard vs. Rallye SA | Casino Guichard vs. Lagardere SCA | Casino Guichard vs. Valeo SA |
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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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