Correlation Between Sprouts Farmers and Casino Guichard
Can any of the company-specific risk be diversified away by investing in both Sprouts Farmers 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 Sprouts Farmers and Casino Guichard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprouts Farmers Market and Casino Guichard Perrachon, you can compare the effects of market volatilities on Sprouts Farmers 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 Sprouts Farmers with a short position of Casino Guichard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprouts Farmers and Casino Guichard.
Diversification Opportunities for Sprouts Farmers and Casino Guichard
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sprouts and Casino is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sprouts Farmers Market and Casino Guichard Perrachon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casino Guichard Perrachon and Sprouts Farmers 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 Sprouts Farmers Market 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 Perrachon has no effect on the direction of Sprouts Farmers i.e., Sprouts Farmers and Casino Guichard go up and down completely randomly.
Pair Corralation between Sprouts Farmers and Casino Guichard
Considering the 90-day investment horizon Sprouts Farmers is expected to generate 471.55 times less return on investment than Casino Guichard. But when comparing it to its historical volatility, Sprouts Farmers Market is 194.28 times less risky than Casino Guichard. It trades about 0.16 of its potential returns per unit of risk. Casino Guichard Perrachon is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 22,176 in Casino Guichard Perrachon on September 3, 2024 and sell it today you would lose (22,166) from holding Casino Guichard Perrachon or give up 99.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.11% |
| Values | Daily Returns |
Sprouts Farmers Market vs. Casino Guichard Perrachon
Performance |
| Timeline |
| Sprouts Farmers Market |
| Casino Guichard Perrachon |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sprouts Farmers and Casino Guichard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprouts Farmers and Casino Guichard
The main advantage of trading using opposite Sprouts Farmers and Casino Guichard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprouts Farmers 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.| Sprouts Farmers vs. Sendas Distribuidora SA | Sprouts Farmers vs. Natural Grocers by | Sprouts Farmers vs. Albertsons Companies | Sprouts Farmers vs. Ingles Markets Incorporated |
| Casino Guichard vs. Dingdong ADR | Casino Guichard vs. Tesco PLC | Casino Guichard vs. Grocery Outlet Holding | Casino Guichard vs. Kesko Oyj ADR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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