Correlation Between J Sainsbury and Casino Guichard

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

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

Diversification Opportunities for J Sainsbury and Casino Guichard

0.0

Correlation Coefficient

J Sainsbury  Casino Guichard

Pay attention - limited upside

The 3 months correlation between JSNSF and Casino is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding J Sainsbury plc and Casino Guichard Perrachon Soci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casino Guichard Perr and J Sainsbury 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 J Sainsbury plc 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 Perr has no effect on the direction of J Sainsbury i.e., J Sainsbury and Casino Guichard go up and down completely randomly.

Pair Corralation between J Sainsbury and Casino Guichard

If you would invest  342.00  in J Sainsbury plc on December 29, 2024 and sell it today you would lose (2.00) from holding J Sainsbury plc or give up 0.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

J Sainsbury plc  vs.  Casino Guichard Perrachon Soci

J Sainsbury plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in J Sainsbury plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, J Sainsbury may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Casino Guichard Perr

Risk-Adjusted Performance

Very Weak

Over the last 90 days Casino Guichard Perrachon Socit has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Casino Guichard is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with J Sainsbury and Casino Guichard

The main advantage of trading using opposite J Sainsbury and Casino Guichard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Sainsbury 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 J Sainsbury plc and Casino Guichard Perrachon Socit 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.