Correlation Between Casino Guichard and Ingles Markets

Can any of the company-specific risk be diversified away by investing in both Casino Guichard and Ingles Markets 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 Casino Guichard and Ingles Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Casino Guichard Perrachon and Ingles Markets Incorporated, you can compare the effects of market volatilities on Casino Guichard and Ingles Markets 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 Casino Guichard with a short position of Ingles Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard and Ingles Markets.

Diversification Opportunities for Casino Guichard and Ingles Markets

0.01

Correlation Coefficient

Casino Guichard  Ingles Markets

Significant diversification

The 3 months correlation between Casino and Ingles is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon and Ingles Markets Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingles Markets and Casino Guichard 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 Casino Guichard Perrachon are associated (or correlated) with Ingles Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingles Markets has no effect on the direction of Casino Guichard i.e., Casino Guichard and Ingles Markets go up and down completely randomly.

Pair Corralation between Casino Guichard and Ingles Markets

If you would invest  10.00  in Casino Guichard Perrachon on September 19, 2024 and sell it today you would earn a total of  0.00  from holding Casino Guichard Perrachon or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Casino Guichard Perrachon  vs.  Ingles Markets Incorporated

Casino Guichard Perrachon

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Casino Guichard Perrachon has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Casino Guichard is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Ingles Markets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ingles Markets Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ingles Markets is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Casino Guichard and Ingles Markets

The main advantage of trading using opposite Casino Guichard and Ingles Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard position performs unexpectedly, Ingles Markets 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 Ingles Markets will offset losses from the drop in Ingles Markets' long position.

The idea behind Casino Guichard Perrachon and Ingles Markets Incorporated pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.