Correlation Between Casino Guichard and Tesco PLC
Can any of the company-specific risk be diversified away by investing in both Casino Guichard and Tesco PLC 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 Tesco PLC 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 Tesco PLC, you can compare the effects of market volatilities on Casino Guichard and Tesco PLC 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 Tesco PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard and Tesco PLC.
Diversification Opportunities for Casino Guichard and Tesco PLC
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Casino and Tesco is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon and Tesco PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tesco PLC 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 Tesco PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tesco PLC has no effect on the direction of Casino Guichard i.e., Casino Guichard and Tesco PLC go up and down completely randomly.
Pair Corralation between Casino Guichard and Tesco PLC
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. Tesco PLC
Performance |
Timeline |
Casino Guichard Perrachon |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tesco PLC |
Casino Guichard and Tesco PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Casino Guichard and Tesco PLC
The main advantage of trading using opposite Casino Guichard and Tesco PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casino Guichard position performs unexpectedly, Tesco PLC 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 Tesco PLC will offset losses from the drop in Tesco PLC's long position.Casino Guichard vs. Dingdong ADR | Casino Guichard vs. Tesco PLC | Casino Guichard vs. Grocery Outlet Holding | Casino Guichard vs. Kesko Oyj ADR |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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