Correlation Between Compagnie and Carrefour
Can any of the company-specific risk be diversified away by investing in both Compagnie 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 Compagnie and Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie de Saint Gobain and Carrefour SA, you can compare the effects of market volatilities on Compagnie 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 Compagnie with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie and Carrefour.
Diversification Opportunities for Compagnie and Carrefour
Good diversification
The 3 months correlation between Compagnie and Carrefour is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie de Saint Gobain and Carrefour SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA and Compagnie 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 Compagnie de Saint Gobain 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 Compagnie i.e., Compagnie and Carrefour go up and down completely randomly.
Pair Corralation between Compagnie and Carrefour
Assuming the 90 days trading horizon Compagnie de Saint Gobain is expected to generate 0.86 times more return on investment than Carrefour. However, Compagnie de Saint Gobain is 1.17 times less risky than Carrefour. It trades about 0.11 of its potential returns per unit of risk. Carrefour SA is currently generating about 0.05 per unit of risk. If you would invest 8,544 in Compagnie de Saint Gobain on October 23, 2024 and sell it today you would earn a total of 216.00 from holding Compagnie de Saint Gobain or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie de Saint Gobain vs. Carrefour SA
Performance |
| Timeline |
| Compagnie de Saint |
| Carrefour SA |
Compagnie and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie and Carrefour
The main advantage of trading using opposite Compagnie and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie 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.| Compagnie vs. Vinci SA | Compagnie vs. Air Liquide SA | Compagnie vs. Compagnie Generale des | Compagnie vs. Bouygues SA |
| Carrefour vs. Danone SA | Carrefour vs. Renault SA | Carrefour vs. AXA SA | Carrefour vs. Compagnie de Saint Gobain |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |