Correlation Between Om Holdings and Casino Guichard-Perrach

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

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

Diversification Opportunities for Om Holdings and Casino Guichard-Perrach

0.37

Correlation Coefficient

Om Holdings  Casino Guichard-Perrach

Weak diversification

The 3 months correlation between OMHI and Casino is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Om Holdings International and Casino Guichard Perrachon Soci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casino Guichard-Perrach and Om Holdings 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 Om Holdings International are associated (or correlated) with Casino Guichard-Perrach. 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-Perrach has no effect on the direction of Om Holdings i.e., Om Holdings and Casino Guichard-Perrach go up and down completely randomly.

Pair Corralation between Om Holdings and Casino Guichard-Perrach

If you would invest  673.00  in Casino Guichard Perrachon Socit on August 31, 2024 and sell it today you would earn a total of  0.00  from holding Casino Guichard Perrachon Socit or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Om Holdings International  vs.  Casino Guichard Perrachon Soci

Om Holdings International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Om Holdings International 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 technical indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Casino Guichard-Perrach

Risk-Adjusted Performance

0 of 100

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-Perrach is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Om Holdings and Casino Guichard-Perrach

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

The idea behind Om Holdings International 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.