Correlation Between Casino Guichard and Atari SA

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

Diversification Opportunities for Casino Guichard and Atari SA

-0.41

Correlation Coefficient

Casino Guichard  Atari SA

Very good diversification

The 3 months correlation between Casino and Atari is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon and Atari SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atari SA 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 Atari SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atari SA has no effect on the direction of Casino Guichard i.e., Casino Guichard and Atari SA go up and down completely randomly.

Pair Corralation between Casino Guichard and Atari SA

Assuming the 90 days horizon Casino Guichard Perrachon is expected to under-perform the Atari SA. But the stock apears to be less risky and, when comparing its historical volatility, Casino Guichard Perrachon is 1.39 times less risky than Atari SA. The stock trades about -0.19 of its potential returns per unit of risk. The Atari SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  12.00  in Atari SA on December 29, 2024 and sell it today you would earn a total of  1.00  from holding Atari SA or generate 8.33% return on investment over 90 days.

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

Casino Guichard Perrachon  vs.  Atari SA

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.

Atari SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Atari SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Atari SA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Casino Guichard and Atari SA

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

The idea behind Casino Guichard Perrachon and Atari SA 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.