Correlation Between Carrefour and Om Holdings

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

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

Diversification Opportunities for Carrefour and Om Holdings

0.35

Correlation Coefficient

Carrefour  Om Holdings

Weak diversification

The 3 months correlation between Carrefour and OMHI is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Carrefour SA and Om Holdings International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Om Holdings International and Carrefour 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 Carrefour SA are associated (or correlated) with Om Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Om Holdings International has no effect on the direction of Carrefour i.e., Carrefour and Om Holdings go up and down completely randomly.

Pair Corralation between Carrefour and Om Holdings

Assuming the 90 days horizon Carrefour SA is expected to generate 0.7 times more return on investment than Om Holdings. However, Carrefour SA is 1.43 times less risky than Om Holdings. It trades about 0.0 of its potential returns per unit of risk. Om Holdings International is currently generating about -0.13 per unit of risk. If you would invest  1,542  in Carrefour SA on May 7, 2025 and sell it today you would lose (107.00) from holding Carrefour SA or give up 6.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Carrefour SA  vs.  Om Holdings International

Carrefour SA

Risk-Adjusted Performance

Very Weak

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

Om Holdings International

Risk-Adjusted Performance

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 September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Carrefour and Om Holdings

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

The idea behind Carrefour SA and Om Holdings International 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.