Correlation Between SwissCom and Carrefour
Can any of the company-specific risk be diversified away by investing in both SwissCom 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 SwissCom and Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SwissCom AG and Carrefour SA PK, you can compare the effects of market volatilities on SwissCom 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 SwissCom with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of SwissCom and Carrefour.
Diversification Opportunities for SwissCom and Carrefour
Poor diversification
The 3 months correlation between SwissCom and Carrefour is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding SwissCom AG and Carrefour SA PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA PK and SwissCom 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 SwissCom AG 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 PK has no effect on the direction of SwissCom i.e., SwissCom and Carrefour go up and down completely randomly.
Pair Corralation between SwissCom and Carrefour
Assuming the 90 days horizon SwissCom AG is expected to generate 0.52 times more return on investment than Carrefour. However, SwissCom AG is 1.92 times less risky than Carrefour. It trades about -0.1 of its potential returns per unit of risk. Carrefour SA PK is currently generating about -0.19 per unit of risk. If you would invest 5,835 in SwissCom AG on September 13, 2024 and sell it today you would lose (125.00) from holding SwissCom AG or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SwissCom AG vs. Carrefour SA PK
Performance |
| Timeline |
| SwissCom AG |
| Carrefour SA PK |
SwissCom and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SwissCom and Carrefour
The main advantage of trading using opposite SwissCom and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SwissCom 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.| SwissCom vs. Telecom Argentina SA | SwissCom vs. Rogers Communications | SwissCom vs. Magyar Telekom Plc | SwissCom vs. Hellenic Telecommunications Org |
| Carrefour vs. Kesko Oyj ADR | Carrefour vs. Carrefour SA | Carrefour vs. J Sainsbury plc | Carrefour vs. Om Holdings International |
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.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |