Correlation Between Casino Guichard and Dassault Aviation

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

Diversification Opportunities for Casino Guichard and Dassault Aviation

-0.91

Correlation Coefficient

Casino Guichard  Dassault Aviation

Pay attention - limited upside

The 3 months correlation between Casino and Dassault is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Casino Guichard Perrachon and Dassault Aviation SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dassault Aviation 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 Dassault Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dassault Aviation has no effect on the direction of Casino Guichard i.e., Casino Guichard and Dassault Aviation go up and down completely randomly.

Pair Corralation between Casino Guichard and Dassault Aviation

Assuming the 90 days horizon Casino Guichard Perrachon is expected to under-perform the Dassault Aviation. In addition to that, Casino Guichard is 1.51 times more volatile than Dassault Aviation SA. It trades about -0.18 of its total potential returns per unit of risk. Dassault Aviation SA is currently generating about 0.29 per unit of volatility. If you would invest  19,580  in Dassault Aviation SA on December 30, 2024 and sell it today you would earn a total of  11,320  from holding Dassault Aviation SA or generate 57.81% return on investment over 90 days.

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

Casino Guichard Perrachon  vs.  Dassault Aviation 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.

Dassault Aviation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dassault Aviation SA are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Dassault Aviation sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Casino Guichard and Dassault Aviation

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

The idea behind Casino Guichard Perrachon and Dassault Aviation 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.