Correlation Between Trimble and Carrefour
Can any of the company-specific risk be diversified away by investing in both Trimble 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 Trimble and Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimble and Carrefour SA PK, you can compare the effects of market volatilities on Trimble 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 Trimble with a short position of Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimble and Carrefour.
Diversification Opportunities for Trimble and Carrefour
Excellent diversification
The 3 months correlation between Trimble and Carrefour is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Trimble 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 Trimble 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 Trimble 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 Trimble i.e., Trimble and Carrefour go up and down completely randomly.
Pair Corralation between Trimble and Carrefour
Given the investment horizon of 90 days Trimble is expected to generate 0.72 times more return on investment than Carrefour. However, Trimble is 1.38 times less risky than Carrefour. It trades about 0.27 of its potential returns per unit of risk. Carrefour SA PK is currently generating about 0.06 per unit of risk. If you would invest 6,971 in Trimble on November 3, 2024 and sell it today you would earn a total of 525.00 from holding Trimble or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trimble vs. Carrefour SA PK
Performance |
| Timeline |
| Trimble |
| Carrefour SA PK |
Trimble and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimble and Carrefour
The main advantage of trading using opposite Trimble and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimble 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.| Trimble vs. Fortive Corp | Trimble vs. MKS Instruments | Trimble vs. Novanta | Trimble vs. Vishay Precision Group |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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