Correlation Between Casino Guichard and Accor S

Can any of the company-specific risk be diversified away by investing in both Casino Guichard and Accor S 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 Accor S 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 Accor S A, you can compare the effects of market volatilities on Casino Guichard and Accor S 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 Accor S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casino Guichard and Accor S.

Diversification Opportunities for Casino Guichard and Accor S

-0.52

Correlation Coefficient

Casino Guichard  Accor S

Excellent diversification

The 3 months correlation between Casino and Accor is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon and Accor S A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accor S A 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 Accor S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accor S A has no effect on the direction of Casino Guichard i.e., Casino Guichard and Accor S go up and down completely randomly.

Pair Corralation between Casino Guichard and Accor S

Assuming the 90 days horizon Casino Guichard Perrachon is expected to under-perform the Accor S. In addition to that, Casino Guichard is 3.42 times more volatile than Accor S A. It trades about -0.37 of its total potential returns per unit of risk. Accor S A is currently generating about -0.12 per unit of volatility. If you would invest  4,976  in Accor S A on December 2, 2024 and sell it today you would lose (170.00) from holding Accor S A or give up 3.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Casino Guichard Perrachon  vs.  Accor S A

Casino Guichard Perrachon

Risk-Adjusted Performance

Very Weak

Over the last 90 days Casino Guichard Perrachon has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Accor S A

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Accor S A are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Accor S may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Casino Guichard and Accor S

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

The idea behind Casino Guichard Perrachon and Accor S A 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.