Correlation Between CarrefourSA Carrefour and Sodas Sodyum
Can any of the company-specific risk be diversified away by investing in both CarrefourSA Carrefour and Sodas Sodyum 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 CarrefourSA Carrefour and Sodas Sodyum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CarrefourSA Carrefour Sabanci and Sodas Sodyum Sanayi, you can compare the effects of market volatilities on CarrefourSA Carrefour and Sodas Sodyum 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 CarrefourSA Carrefour with a short position of Sodas Sodyum. Check out your portfolio center. Please also check ongoing floating volatility patterns of CarrefourSA Carrefour and Sodas Sodyum.
Diversification Opportunities for CarrefourSA Carrefour and Sodas Sodyum
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CarrefourSA and Sodas is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding CarrefourSA Carrefour Sabanci and Sodas Sodyum Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sodas Sodyum Sanayi and CarrefourSA 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 CarrefourSA Carrefour Sabanci are associated (or correlated) with Sodas Sodyum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sodas Sodyum Sanayi has no effect on the direction of CarrefourSA Carrefour i.e., CarrefourSA Carrefour and Sodas Sodyum go up and down completely randomly.
Pair Corralation between CarrefourSA Carrefour and Sodas Sodyum
Assuming the 90 days trading horizon CarrefourSA Carrefour Sabanci is expected to generate 0.77 times more return on investment than Sodas Sodyum. However, CarrefourSA Carrefour Sabanci is 1.3 times less risky than Sodas Sodyum. It trades about -0.05 of its potential returns per unit of risk. Sodas Sodyum Sanayi is currently generating about -0.1 per unit of risk. If you would invest 10,390 in CarrefourSA Carrefour Sabanci on September 3, 2024 and sell it today you would lose (170.00) from holding CarrefourSA Carrefour Sabanci or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CarrefourSA Carrefour Sabanci vs. Sodas Sodyum Sanayi
Performance |
| Timeline |
| CarrefourSA Carrefour |
| Sodas Sodyum Sanayi |
CarrefourSA Carrefour and Sodas Sodyum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CarrefourSA Carrefour and Sodas Sodyum
The main advantage of trading using opposite CarrefourSA Carrefour and Sodas Sodyum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CarrefourSA Carrefour position performs unexpectedly, Sodas Sodyum 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 Sodas Sodyum will offset losses from the drop in Sodas Sodyum's long position.| CarrefourSA Carrefour vs. Sodas Sodyum Sanayi | CarrefourSA Carrefour vs. Mackolik Internet Hizmetleri | CarrefourSA Carrefour vs. Cuhadaroglu Metal Sanayi | CarrefourSA Carrefour vs. Bms Birlesik Metal |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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