Correlation Between Healthier Choices and Carrefour
Can any of the company-specific risk be diversified away by investing in both Healthier Choices 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 Healthier Choices and Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthier Choices Management and Carrefour SA PK, you can compare the effects of market volatilities on Healthier Choices 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 Healthier Choices with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthier Choices and Carrefour.
Diversification Opportunities for Healthier Choices and Carrefour
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Healthier and Carrefour is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Healthier Choices Management 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 Healthier Choices 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 Healthier Choices Management 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 Healthier Choices i.e., Healthier Choices and Carrefour go up and down completely randomly.
Pair Corralation between Healthier Choices and Carrefour
Given the investment horizon of 90 days Healthier Choices Management is expected to generate 125.47 times more return on investment than Carrefour. However, Healthier Choices is 125.47 times more volatile than Carrefour SA PK. It trades about 0.2 of its potential returns per unit of risk. Carrefour SA PK is currently generating about 0.06 per unit of risk. If you would invest 0.00 in Healthier Choices Management on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Healthier Choices Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Healthier Choices Management vs. Carrefour SA PK
Performance |
| Timeline |
| Healthier Choices |
| Carrefour SA PK |
Healthier Choices and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthier Choices and Carrefour
The main advantage of trading using opposite Healthier Choices and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthier Choices 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.| Healthier Choices vs. Albertsons Companies | Healthier Choices vs. Sprouts Farmers Market | Healthier Choices vs. Krispy Kreme | Healthier Choices vs. Grocery Outlet Holding |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |