Correlation Between Hess and Casino Guichard
Can any of the company-specific risk be diversified away by investing in both Hess 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 Hess and Casino Guichard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hess Corporation and Casino Guichard Perrachon Socit, you can compare the effects of market volatilities on Hess 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 Hess with a short position of Casino Guichard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hess and Casino Guichard.
Diversification Opportunities for Hess and Casino Guichard
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hess and Casino is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hess Corp. 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 Hess 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 Hess Corporation 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 Hess i.e., Hess and Casino Guichard go up and down completely randomly.
Pair Corralation between Hess and Casino Guichard
If you would invest 13,542 in Hess Corporation on November 3, 2024 and sell it today you would earn a total of 361.00 from holding Hess Corporation or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hess Corp. vs. Casino Guichard Perrachon Soci
Performance |
| Timeline |
| Hess |
| Casino Guichard Perr |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hess and Casino Guichard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hess and Casino Guichard
The main advantage of trading using opposite Hess and Casino Guichard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hess 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 Hess Corporation 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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