Correlation Between Suntory Beverage and JERONIMO MARTINS
Can any of the company-specific risk be diversified away by investing in both Suntory Beverage and JERONIMO MARTINS 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 Suntory Beverage and JERONIMO MARTINS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suntory Beverage Food and JERONIMO MARTINS UNADR2, you can compare the effects of market volatilities on Suntory Beverage and JERONIMO MARTINS 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 Suntory Beverage with a short position of JERONIMO MARTINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suntory Beverage and JERONIMO MARTINS.
Diversification Opportunities for Suntory Beverage and JERONIMO MARTINS
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suntory and JERONIMO is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Suntory Beverage Food and JERONIMO MARTINS UNADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JERONIMO MARTINS UNADR2 and Suntory Beverage 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 Suntory Beverage Food are associated (or correlated) with JERONIMO MARTINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JERONIMO MARTINS UNADR2 has no effect on the direction of Suntory Beverage i.e., Suntory Beverage and JERONIMO MARTINS go up and down completely randomly.
Pair Corralation between Suntory Beverage and JERONIMO MARTINS
Assuming the 90 days horizon Suntory Beverage Food is expected to under-perform the JERONIMO MARTINS. In addition to that, Suntory Beverage is 1.18 times more volatile than JERONIMO MARTINS UNADR2. It trades about -0.19 of its total potential returns per unit of risk. JERONIMO MARTINS UNADR2 is currently generating about -0.11 per unit of volatility. If you would invest 3,700 in JERONIMO MARTINS UNADR2 on October 13, 2024 and sell it today you would lose (100.00) from holding JERONIMO MARTINS UNADR2 or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suntory Beverage Food vs. JERONIMO MARTINS UNADR2
Performance |
| Timeline |
| Suntory Beverage Food |
| JERONIMO MARTINS UNADR2 |
Suntory Beverage and JERONIMO MARTINS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suntory Beverage and JERONIMO MARTINS
The main advantage of trading using opposite Suntory Beverage and JERONIMO MARTINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suntory Beverage position performs unexpectedly, JERONIMO MARTINS 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 JERONIMO MARTINS will offset losses from the drop in JERONIMO MARTINS's long position.| Suntory Beverage vs. CARSALESCOM | Suntory Beverage vs. Aedas Homes SA | Suntory Beverage vs. Lamar Advertising | Suntory Beverage vs. The Home Depot |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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