Correlation Between Mtropole Tlvision and Carrefour
Can any of the company-specific risk be diversified away by investing in both Mtropole Tlvision 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 Mtropole Tlvision and Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mtropole Tlvision SA and Carrefour SA, you can compare the effects of market volatilities on Mtropole Tlvision 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 Mtropole Tlvision with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mtropole Tlvision and Carrefour.
Diversification Opportunities for Mtropole Tlvision and Carrefour
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mtropole and Carrefour is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mtropole Tlvision SA and Carrefour SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA and Mtropole Tlvision 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 Mtropole Tlvision SA 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 Mtropole Tlvision i.e., Mtropole Tlvision and Carrefour go up and down completely randomly.
Pair Corralation between Mtropole Tlvision and Carrefour
Assuming the 90 days trading horizon Mtropole Tlvision SA is expected to under-perform the Carrefour. In addition to that, Mtropole Tlvision is 1.55 times more volatile than Carrefour SA. It trades about -0.36 of its total potential returns per unit of risk. Carrefour SA is currently generating about -0.04 per unit of volatility. If you would invest 1,460 in Carrefour SA on August 28, 2024 and sell it today you would lose (12.00) from holding Carrefour SA or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mtropole Tlvision SA vs. Carrefour SA
Performance |
| Timeline |
| Mtropole Tlvision |
| Carrefour SA |
Mtropole Tlvision and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mtropole Tlvision and Carrefour
The main advantage of trading using opposite Mtropole Tlvision and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mtropole Tlvision 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.| Mtropole Tlvision vs. Television Francaise 1 | Mtropole Tlvision vs. Nexity | Mtropole Tlvision vs. Lagardere SCA | Mtropole Tlvision vs. Eutelsat Communications SA |
| Carrefour vs. Lagardere SCA | Carrefour vs. Mtropole Tlvision SA | Carrefour vs. Mercialys SA | Carrefour vs. Nexity |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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