Correlation Between Casino Guichard and Socit BIC
Can any of the company-specific risk be diversified away by investing in both Casino Guichard and Socit BIC 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 Socit BIC 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 Socit BIC SA, you can compare the effects of market volatilities on Casino Guichard and Socit BIC 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 Socit BIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard and Socit BIC.
Diversification Opportunities for Casino Guichard and Socit BIC
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Casino and Socit is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon and Socit BIC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit BIC SA 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 Socit BIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit BIC SA has no effect on the direction of Casino Guichard i.e., Casino Guichard and Socit BIC go up and down completely randomly.
Pair Corralation between Casino Guichard and Socit BIC
Assuming the 90 days horizon Casino Guichard Perrachon is expected to under-perform the Socit BIC. In addition to that, Casino Guichard is 2.17 times more volatile than Socit BIC SA. It trades about -0.21 of its total potential returns per unit of risk. Socit BIC SA is currently generating about 0.0 per unit of volatility. If you would invest 6,421 in Socit BIC SA on August 24, 2024 and sell it today you would lose (141.00) from holding Socit BIC SA or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Casino Guichard Perrachon vs. Socit BIC SA
Performance |
| Timeline |
| Casino Guichard Perrachon |
| Socit BIC SA |
Casino Guichard and Socit BIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casino Guichard and Socit BIC
The main advantage of trading using opposite Casino Guichard and Socit BIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard position performs unexpectedly, Socit BIC 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 Socit BIC will offset losses from the drop in Socit BIC's long position.| Casino Guichard vs. Carrefour SA | Casino Guichard vs. Rallye SA | Casino Guichard vs. Lagardere SCA | Casino Guichard vs. Valeo SA |
| Socit BIC vs. Imerys SA | Socit BIC vs. Casino Guichard Perrachon | Socit BIC vs. SEB SA | Socit BIC vs. Mtropole Tlvision 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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