Correlation Between J Sainsbury and Casino Guichard-Perrach
Can any of the company-specific risk be diversified away by investing in both J Sainsbury and Casino Guichard-Perrach 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 J Sainsbury and Casino Guichard-Perrach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Sainsbury PLC and Casino Guichard Perrachon Socit, you can compare the effects of market volatilities on J Sainsbury and Casino Guichard-Perrach 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 J Sainsbury with a short position of Casino Guichard-Perrach. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Sainsbury and Casino Guichard-Perrach.
Diversification Opportunities for J Sainsbury and Casino Guichard-Perrach
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JSAIY and Casino is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding J Sainsbury PLC and Casino Guichard Perrachon Soci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casino Guichard-Perrach and J Sainsbury 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 J Sainsbury PLC are associated (or correlated) with Casino Guichard-Perrach. 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-Perrach has no effect on the direction of J Sainsbury i.e., J Sainsbury and Casino Guichard-Perrach go up and down completely randomly.
Pair Corralation between J Sainsbury and Casino Guichard-Perrach
If you would invest 673.00 in Casino Guichard Perrachon Socit on August 24, 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 | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
J Sainsbury PLC vs. Casino Guichard Perrachon Soci
Performance |
| Timeline |
| J Sainsbury PLC |
| Casino Guichard-Perrach |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
J Sainsbury and Casino Guichard-Perrach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Sainsbury and Casino Guichard-Perrach
The main advantage of trading using opposite J Sainsbury and Casino Guichard-Perrach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Sainsbury position performs unexpectedly, Casino Guichard-Perrach 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-Perrach will offset losses from the drop in Casino Guichard-Perrach's long position.| J Sainsbury vs. Kesko Oyj ADR | J Sainsbury vs. Om Holdings International | J Sainsbury vs. Tesco PLC | J Sainsbury vs. Carrefour SA |
| Casino Guichard-Perrach vs. Carrefour SA | Casino Guichard-Perrach vs. J Sainsbury plc | Casino Guichard-Perrach vs. Om Holdings International | Casino Guichard-Perrach 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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