Correlation Between Carrefour and Carrefour
Can any of the company-specific risk be diversified away by investing in both Carrefour 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 Carrefour and Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carrefour SA and Carrefour SA PK, you can compare the effects of market volatilities on Carrefour 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 Carrefour with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carrefour and Carrefour.
Diversification Opportunities for Carrefour and Carrefour
Very poor diversification
The 3 months correlation between Carrefour and Carrefour is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Carrefour SA and Carrefour SA PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA PK 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 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 PK has no effect on the direction of Carrefour i.e., Carrefour and Carrefour go up and down completely randomly.
Pair Corralation between Carrefour and Carrefour
Assuming the 90 days horizon Carrefour SA is expected to under-perform the Carrefour. But the pink sheet apears to be less risky and, when comparing its historical volatility, Carrefour SA is 1.0 times less risky than Carrefour. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Carrefour SA PK is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 274.00 in Carrefour SA PK on November 3, 2024 and sell it today you would earn a total of 5.00 from holding Carrefour SA PK or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carrefour SA vs. Carrefour SA PK
Performance |
| Timeline |
| Carrefour SA |
| Carrefour SA PK |
Carrefour and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carrefour and Carrefour
The main advantage of trading using opposite Carrefour and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carrefour 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.| Carrefour vs. J Sainsbury plc | Carrefour vs. Om Holdings International | Carrefour vs. Carrefour SA PK | Carrefour vs. Kesko Oyj ADR |
| Carrefour vs. Kesko Oyj ADR | Carrefour vs. Carrefour SA | Carrefour vs. J Sainsbury plc | Carrefour vs. Om Holdings International |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |