Correlation Between Ingles Markets and Carrefour
Can any of the company-specific risk be diversified away by investing in both Ingles Markets 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 Ingles Markets and Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingles Markets Incorporated and Carrefour SA, you can compare the effects of market volatilities on Ingles Markets 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 Ingles Markets with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingles Markets and Carrefour.
Diversification Opportunities for Ingles Markets and Carrefour
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ingles and Carrefour is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ingles Markets Incorporated and Carrefour SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA and Ingles Markets 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 Ingles Markets Incorporated 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 has no effect on the direction of Ingles Markets i.e., Ingles Markets and Carrefour go up and down completely randomly.
Pair Corralation between Ingles Markets and Carrefour
Assuming the 90 days horizon Ingles Markets Incorporated is expected to generate 0.99 times more return on investment than Carrefour. However, Ingles Markets Incorporated is 1.01 times less risky than Carrefour. It trades about 0.02 of its potential returns per unit of risk. Carrefour SA is currently generating about -0.01 per unit of risk. If you would invest 7,313 in Ingles Markets Incorporated on August 28, 2024 and sell it today you would earn a total of 107.00 from holding Ingles Markets Incorporated or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Ingles Markets Incorporated vs. Carrefour SA
Performance |
| Timeline |
| Ingles Markets |
| Carrefour SA |
Ingles Markets and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingles Markets and Carrefour
The main advantage of trading using opposite Ingles Markets and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingles Markets 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.| Ingles Markets vs. Innovative Food Hldg | Ingles Markets vs. Calavo Growers | Ingles Markets vs. The Chefs Warehouse | Ingles Markets vs. AMCON Distributing |
| Carrefour vs. Natural Grocers by | Carrefour vs. Grocery Outlet Holding | Carrefour vs. Village Super Market | Carrefour vs. Ingles Markets Incorporated |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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