Correlation Between GM and Casino Guichard
Can any of the company-specific risk be diversified away by investing in both GM and Casino Guichard 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 GM and Casino Guichard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Casino Guichard Perrachon Socit, you can compare the effects of market volatilities on GM and Casino Guichard 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 GM with a short position of Casino Guichard. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Casino Guichard.
Diversification Opportunities for GM and Casino Guichard
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GM and Casino is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Casino Guichard Perrachon Soci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casino Guichard Perr and GM 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 General Motors are associated (or correlated) with Casino Guichard. 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 Perr has no effect on the direction of GM i.e., GM and Casino Guichard go up and down completely randomly.
Pair Corralation between GM and Casino Guichard
If you would invest 673.00 in Casino Guichard Perrachon Socit on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Casino Guichard Perrachon Socit or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
General Motors vs. Casino Guichard Perrachon Soci
Performance |
| Timeline |
| General Motors |
| Casino Guichard Perr |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Casino Guichard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Casino Guichard
The main advantage of trading using opposite GM and Casino Guichard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Casino Guichard 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 will offset losses from the drop in Casino Guichard's long position.The idea behind General Motors and Casino Guichard Perrachon Socit 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.| Casino Guichard vs. Carrefour SA | Casino Guichard vs. J Sainsbury plc | Casino Guichard vs. Om Holdings International | Casino Guichard 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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