Correlation Between Signal Advance and Carrefour
Can any of the company-specific risk be diversified away by investing in both Signal Advance 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 Signal Advance and Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signal Advance and Carrefour SA, you can compare the effects of market volatilities on Signal Advance 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 Signal Advance with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signal Advance and Carrefour.
Diversification Opportunities for Signal Advance and Carrefour
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Signal and Carrefour is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Signal Advance and Carrefour SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA and Signal Advance 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 Signal Advance 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 Signal Advance i.e., Signal Advance and Carrefour go up and down completely randomly.
Pair Corralation between Signal Advance and Carrefour
Given the investment horizon of 90 days Signal Advance is expected to generate 6.79 times more return on investment than Carrefour. However, Signal Advance is 6.79 times more volatile than Carrefour SA. It trades about 0.39 of its potential returns per unit of risk. Carrefour SA is currently generating about -0.02 per unit of risk. If you would invest 8.90 in Signal Advance on November 3, 2024 and sell it today you would earn a total of 11.10 from holding Signal Advance or generate 124.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Signal Advance vs. Carrefour SA
Performance |
| Timeline |
| Signal Advance |
| Carrefour SA |
Signal Advance and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signal Advance and Carrefour
The main advantage of trading using opposite Signal Advance and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signal Advance 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.| Signal Advance vs. Mind Technology | Signal Advance vs. Wrap Technologies | Signal Advance vs. Microvision | Signal Advance vs. Darkpulse |
| Carrefour vs. J Sainsbury plc | Carrefour vs. Om Holdings International | Carrefour vs. Carrefour SA PK | Carrefour 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |