Correlation Between Carrefour and CP All
Can any of the company-specific risk be diversified away by investing in both Carrefour and CP All 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 CP All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carrefour SA and CP All PCL, you can compare the effects of market volatilities on Carrefour and CP All 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 CP All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carrefour and CP All.
Diversification Opportunities for Carrefour and CP All
Good diversification
The 3 months correlation between Carrefour and CPPCY is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Carrefour SA and CP All PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP All PCL 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 CP All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP All PCL has no effect on the direction of Carrefour i.e., Carrefour and CP All go up and down completely randomly.
Pair Corralation between Carrefour and CP All
Assuming the 90 days horizon Carrefour SA is expected to under-perform the CP All. But the pink sheet apears to be less risky and, when comparing its historical volatility, Carrefour SA is 1.88 times less risky than CP All. The pink sheet trades about -0.03 of its potential returns per unit of risk. The CP All PCL is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,697 in CP All PCL on September 12, 2024 and sell it today you would earn a total of 255.00 from holding CP All PCL or generate 15.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.09% |
| Values | Daily Returns |
Carrefour SA vs. CP All PCL
Performance |
| Timeline |
| Carrefour SA |
| CP All PCL |
Carrefour and CP All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carrefour and CP All
The main advantage of trading using opposite Carrefour and CP All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carrefour position performs unexpectedly, CP All 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 CP All will offset losses from the drop in CP All's long position.| Carrefour vs. Natural Grocers by | Carrefour vs. Grocery Outlet Holding | Carrefour vs. Village Super Market | Carrefour vs. Ingles Markets Incorporated |
| CP All vs. Weibo Corp | CP All vs. Skechers USA | CP All vs. Juniata Valley Financial | CP All vs. Pintec Technology Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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