Correlation Between Casino Guichard and Rallye SA

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Can any of the company-specific risk be diversified away by investing in both Casino Guichard 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 Casino Guichard and Rallye SA 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 Rallye SA, you can compare the effects of market volatilities on Casino Guichard 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 Casino Guichard with a short position of Rallye SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard and Rallye SA.

Diversification Opportunities for Casino Guichard and Rallye SA

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Casino and Rallye is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon and Rallye SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rallye 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 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 Casino Guichard i.e., Casino Guichard and Rallye SA go up and down completely randomly.

Pair Corralation between Casino Guichard and Rallye SA

If you would invest  4.41  in Rallye SA on September 1, 2024 and sell it today you would earn a total of  0.00  from holding Rallye SA or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Casino Guichard Perrachon  vs.  Rallye SA

 Performance 
       Timeline  
Casino Guichard Perrachon 

Risk-Adjusted Performance

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Over the last 90 days Casino Guichard Perrachon has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
Rallye SA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Rallye SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Rallye SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Casino Guichard and Rallye SA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Casino Guichard and Rallye SA

The main advantage of trading using opposite Casino Guichard and Rallye SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard 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.
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The idea behind Casino Guichard Perrachon and Rallye SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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