Correlation Between Kesko Oyj and Casino Guichard
Can any of the company-specific risk be diversified away by investing in both Kesko Oyj 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 Kesko Oyj and Casino Guichard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kesko Oyj ADR and Casino Guichard Perrachon Socit, you can compare the effects of market volatilities on Kesko Oyj 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 Kesko Oyj with a short position of Casino Guichard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kesko Oyj and Casino Guichard.
Diversification Opportunities for Kesko Oyj and Casino Guichard
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kesko and Casino is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kesko Oyj ADR 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 Kesko Oyj 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 Kesko Oyj ADR 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 Kesko Oyj i.e., Kesko Oyj and Casino Guichard go up and down completely randomly.
Pair Corralation between Kesko Oyj and Casino Guichard
If you would invest 931.00 in Kesko Oyj ADR on November 3, 2024 and sell it today you would earn a total of 11.00 from holding Kesko Oyj ADR or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kesko Oyj ADR vs. Casino Guichard Perrachon Soci
Performance |
| Timeline |
| Kesko Oyj ADR |
| Casino Guichard Perr |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kesko Oyj and Casino Guichard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kesko Oyj and Casino Guichard
The main advantage of trading using opposite Kesko Oyj and Casino Guichard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kesko Oyj 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.| Kesko Oyj vs. Carrefour SA PK | Kesko Oyj vs. J Sainsbury plc | Kesko Oyj vs. Om Holdings International | Kesko Oyj vs. J Sainsbury PLC |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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