Correlation Between Seven I and Carrefour
Can any of the company-specific risk be diversified away by investing in both Seven I 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 Seven I and Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seven i Holdings and Carrefour SA, you can compare the effects of market volatilities on Seven I 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 Seven I with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seven I and Carrefour.
Diversification Opportunities for Seven I and Carrefour
Good diversification
The 3 months correlation between Seven and Carrefour is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Seven i Holdings and Carrefour SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA and Seven I 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 Seven i Holdings 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 Seven I i.e., Seven I and Carrefour go up and down completely randomly.
Pair Corralation between Seven I and Carrefour
Assuming the 90 days horizon Seven i Holdings is expected to generate 0.89 times more return on investment than Carrefour. However, Seven i Holdings is 1.12 times less risky than Carrefour. It trades about 0.05 of its potential returns per unit of risk. Carrefour SA is currently generating about -0.02 per unit of risk. If you would invest 1,565 in Seven i Holdings on November 3, 2024 and sell it today you would earn a total of 23.00 from holding Seven i Holdings or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seven i Holdings vs. Carrefour SA
Performance |
| Timeline |
| Seven i Holdings |
| Carrefour SA |
Seven I and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seven I and Carrefour
The main advantage of trading using opposite Seven I and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seven I 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.| Seven I vs. Koninklijke Ahold Delhaize | Seven I vs. Weis Markets | Seven I vs. Albertsons Companies | Seven I vs. Dingdong ADR |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |