Correlation Between Weis Markets and Casino Guichard

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

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

Diversification Opportunities for Weis Markets and Casino Guichard

-0.14

Correlation Coefficient

Weis Markets  Casino Guichard

Good diversification

The 3 months correlation between Weis and Casino is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Weis Markets and Casino Guichard Perrachon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casino Guichard Perrachon and Weis Markets 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 Weis Markets are associated (or correlated) with Casino Guichard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casino Guichard Perrachon has no effect on the direction of Weis Markets i.e., Weis Markets and Casino Guichard go up and down completely randomly.

Pair Corralation between Weis Markets and Casino Guichard

Considering the 90-day investment horizon Weis Markets is expected to under-perform the Casino Guichard. But the stock apears to be less risky and, when comparing its historical volatility, Weis Markets is 224.59 times less risky than Casino Guichard. The stock trades about -0.01 of its potential returns per unit of risk. The Casino Guichard Perrachon is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  20,830  in Casino Guichard Perrachon on September 20, 2024 and sell it today you would lose (20,820) from holding Casino Guichard Perrachon or give up 99.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	68.55%
Values	Daily Returns

Weis Markets  vs.  Casino Guichard Perrachon

Weis Markets

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Weis Markets are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent primary indicators, Weis Markets is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

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.

Pair Trading with Weis Markets and Casino Guichard

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

The idea behind Weis Markets and Casino Guichard Perrachon 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.

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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.