Correlation Between Carrefour and Casino Guichard-Perrach
Can any of the company-specific risk be diversified away by investing in both Carrefour and Casino Guichard-Perrach 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 Carrefour and Casino Guichard-Perrach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carrefour SA and Casino Guichard Perrachon Socit, you can compare the effects of market volatilities on Carrefour and Casino Guichard-Perrach 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 Carrefour with a short position of Casino Guichard-Perrach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carrefour and Casino Guichard-Perrach.
Diversification Opportunities for Carrefour and Casino Guichard-Perrach
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carrefour and Casino is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Carrefour SA and Casino Guichard Perrachon Soci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casino Guichard-Perrach and Carrefour 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 Carrefour SA are associated (or correlated) with Casino Guichard-Perrach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casino Guichard-Perrach has no effect on the direction of Carrefour i.e., Carrefour and Casino Guichard-Perrach go up and down completely randomly.
Pair Corralation between Carrefour and Casino Guichard-Perrach
If you would invest 1,535 in Carrefour SA on August 28, 2024 and sell it today you would earn a total of 38.00 from holding Carrefour SA or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Carrefour SA vs. Casino Guichard Perrachon Soci
Performance |
| Timeline |
| Carrefour SA |
| Casino Guichard-Perrach |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Carrefour and Casino Guichard-Perrach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carrefour and Casino Guichard-Perrach
The main advantage of trading using opposite Carrefour and Casino Guichard-Perrach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carrefour position performs unexpectedly, Casino Guichard-Perrach 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 Casino Guichard-Perrach will offset losses from the drop in Casino Guichard-Perrach's long position.| Carrefour vs. Natural Grocers by | Carrefour vs. Grocery Outlet Holding | Carrefour vs. Village Super Market | Carrefour vs. Ingles Markets Incorporated |
| Casino Guichard-Perrach vs. Carrefour SA | Casino Guichard-Perrach vs. J Sainsbury plc | Casino Guichard-Perrach vs. Om Holdings International | Casino Guichard-Perrach vs. Carrefour SA PK |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings 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 |