Correlation Between Casino Guichard and Carrefour
Can any of the company-specific risk be diversified away by investing in both Casino Guichard and Carrefour 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 Carrefour 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 Carrefour SA, you can compare the effects of market volatilities on Casino Guichard and Carrefour 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 Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard and Carrefour.
Diversification Opportunities for Casino Guichard and Carrefour
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Casino and Carrefour is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon and Carrefour SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour 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 Carrefour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carrefour SA has no effect on the direction of Casino Guichard i.e., Casino Guichard and Carrefour go up and down completely randomly.
Pair Corralation between Casino Guichard and Carrefour
Assuming the 90 days horizon Casino Guichard Perrachon is expected to under-perform the Carrefour. In addition to that, Casino Guichard is 6.96 times more volatile than Carrefour SA. It trades about -0.51 of its total potential returns per unit of risk. Carrefour SA is currently generating about -0.04 per unit of volatility. If you would invest 1,460 in Carrefour SA on August 28, 2024 and sell it today you would lose (12.00) from holding Carrefour SA or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Casino Guichard Perrachon vs. Carrefour SA
Performance |
| Timeline |
| Casino Guichard Perrachon |
| Carrefour SA |
Casino Guichard and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casino Guichard and Carrefour
The main advantage of trading using opposite Casino Guichard and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard position performs unexpectedly, Carrefour 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 Carrefour will offset losses from the drop in Carrefour's long position.| Casino Guichard vs. Lagardere SCA | Casino Guichard vs. Mtropole Tlvision SA | Casino Guichard vs. Mercialys SA | Casino Guichard vs. Nexity |
| Carrefour vs. Lagardere SCA | Carrefour vs. Mtropole Tlvision SA | Carrefour vs. Mercialys SA | Carrefour vs. Nexity |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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