Correlation Between Admie Holding and Jumbo SA
Can any of the company-specific risk be diversified away by investing in both Admie Holding and Jumbo SA 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 Admie Holding and Jumbo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Admie Holding SA and Jumbo SA, you can compare the effects of market volatilities on Admie Holding and Jumbo SA 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 Admie Holding with a short position of Jumbo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Admie Holding and Jumbo SA.
Diversification Opportunities for Admie Holding and Jumbo SA
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Admie and Jumbo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Admie Holding SA and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA and Admie Holding 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 Admie Holding SA are associated (or correlated) with Jumbo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jumbo SA has no effect on the direction of Admie Holding i.e., Admie Holding and Jumbo SA go up and down completely randomly.
Pair Corralation between Admie Holding and Jumbo SA
Assuming the 90 days trading horizon Admie Holding is expected to generate 1.42 times less return on investment than Jumbo SA. But when comparing it to its historical volatility, Admie Holding SA is 1.2 times less risky than Jumbo SA. It trades about 0.05 of its potential returns per unit of risk. Jumbo SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,598 in Jumbo SA on August 27, 2024 and sell it today you would earn a total of 868.00 from holding Jumbo SA or generate 54.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Admie Holding SA vs. Jumbo SA
Performance |
| Timeline |
| Admie Holding SA |
| Jumbo SA |
Admie Holding and Jumbo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Admie Holding and Jumbo SA
The main advantage of trading using opposite Admie Holding and Jumbo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Admie Holding position performs unexpectedly, Jumbo SA 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 Jumbo SA will offset losses from the drop in Jumbo SA's long position.| Admie Holding vs. Mytilineos SA | Admie Holding vs. Motor Oil Corinth | Admie Holding vs. Hellenic Petroleum SA | Admie Holding vs. National Bank of |
| Jumbo SA vs. Autohellas SA | Jumbo SA vs. BriQ Properties Real | Jumbo SA vs. Thrace Plastics Holding | Jumbo SA vs. Kri Kri Milk Industry |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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