Correlation Between As Commercial and Jumbo SA
Can any of the company-specific risk be diversified away by investing in both As Commercial 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 As Commercial and Jumbo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between As Commercial Industrial and Jumbo SA, you can compare the effects of market volatilities on As Commercial 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 As Commercial with a short position of Jumbo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of As Commercial and Jumbo SA.
Diversification Opportunities for As Commercial and Jumbo SA
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASCO and Jumbo is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding As Commercial Industrial and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA and As Commercial 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 As Commercial Industrial 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 As Commercial i.e., As Commercial and Jumbo SA go up and down completely randomly.
Pair Corralation between As Commercial and Jumbo SA
Assuming the 90 days trading horizon As Commercial is expected to generate 2.03 times less return on investment than Jumbo SA. But when comparing it to its historical volatility, As Commercial Industrial is 1.29 times less risky than Jumbo SA. It trades about 0.04 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
As Commercial Industrial vs. Jumbo SA
Performance |
| Timeline |
| As Commercial Industrial |
| Jumbo SA |
As Commercial and Jumbo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with As Commercial and Jumbo SA
The main advantage of trading using opposite As Commercial and Jumbo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if As Commercial 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.| As Commercial vs. Autohellas SA | As Commercial vs. BriQ Properties Real | As Commercial vs. Thrace Plastics Holding | As Commercial vs. Kri Kri Milk Industry |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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