Correlation Between CP ALL and J Sainsbury
Can any of the company-specific risk be diversified away by investing in both CP ALL and J Sainsbury 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 CP ALL and J Sainsbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CP ALL Public and J Sainsbury plc, you can compare the effects of market volatilities on CP ALL and J Sainsbury 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 CP ALL with a short position of J Sainsbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and J Sainsbury.
Diversification Opportunities for CP ALL and J Sainsbury
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CVPBF and JSNSF is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and J Sainsbury plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Sainsbury plc and CP ALL 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 CP ALL Public are associated (or correlated) with J Sainsbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Sainsbury plc has no effect on the direction of CP ALL i.e., CP ALL and J Sainsbury go up and down completely randomly.
Pair Corralation between CP ALL and J Sainsbury
Assuming the 90 days horizon CP ALL is expected to generate 1.39 times less return on investment than J Sainsbury. But when comparing it to its historical volatility, CP ALL Public is 1.2 times less risky than J Sainsbury. It trades about 0.02 of its potential returns per unit of risk. J Sainsbury plc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 460.00 in J Sainsbury plc on November 9, 2025 and sell it today you would earn a total of 0.00 from holding J Sainsbury plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. J Sainsbury plc
Performance |
| Timeline |
| CP ALL Public |
| J Sainsbury plc |
CP ALL and J Sainsbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and J Sainsbury
The main advantage of trading using opposite CP ALL and J Sainsbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, J Sainsbury 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 J Sainsbury will offset losses from the drop in J Sainsbury's long position.| CP ALL vs. Talen Energy | CP ALL vs. Infratil Limited | CP ALL vs. Mercury NZ Limited | CP ALL vs. Electricity Generating PCL |
| J Sainsbury vs. Carrefour SA | J Sainsbury vs. Empire Company Limited | J Sainsbury vs. Carrefour SA PK | J Sainsbury vs. Kesko Oyj |
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 Stocks Directory module to find actively traded stocks across global markets.
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