Correlation Between Kroger and Casino Guichard
Can any of the company-specific risk be diversified away by investing in both Kroger 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 Kroger and Casino Guichard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kroger Company and Casino Guichard Perrachon, you can compare the effects of market volatilities on Kroger 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 Kroger with a short position of Casino Guichard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kroger and Casino Guichard.
Diversification Opportunities for Kroger and Casino Guichard
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kroger and Casino is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kroger Company 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 Kroger 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 Kroger Company 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 Kroger i.e., Kroger and Casino Guichard go up and down completely randomly.
Pair Corralation between Kroger and Casino Guichard
If you would invest 6,093 in Kroger Company on November 30, 2024 and sell it today you would earn a total of 389.00 from holding Kroger Company or generate 6.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Kroger Company vs. Casino Guichard Perrachon
Performance |
Timeline |
Kroger Company |
Casino Guichard Perrachon |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Kroger and Casino Guichard Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kroger and Casino Guichard
The main advantage of trading using opposite Kroger and Casino Guichard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kroger 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.Kroger vs. Grocery Outlet Holding | Kroger vs. Sprouts Farmers Market | Kroger vs. Weis Markets | Kroger vs. Ingles Markets Incorporated |
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Check out your portfolio center.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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