Correlation Between Mission Produce and Jeronimo Martins
Can any of the company-specific risk be diversified away by investing in both Mission Produce 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 Mission Produce and Jeronimo Martins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mission Produce and Jeronimo Martins SGPS, you can compare the effects of market volatilities on Mission Produce 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 Mission Produce with a short position of Jeronimo Martins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mission Produce and Jeronimo Martins.
Diversification Opportunities for Mission Produce and Jeronimo Martins
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mission and Jeronimo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mission Produce and Jeronimo Martins SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeronimo Martins SGPS and Mission Produce 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 Mission Produce 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 SGPS has no effect on the direction of Mission Produce i.e., Mission Produce and Jeronimo Martins go up and down completely randomly.
Pair Corralation between Mission Produce and Jeronimo Martins
Considering the 90-day investment horizon Mission Produce is expected to generate 1.19 times more return on investment than Jeronimo Martins. However, Mission Produce is 1.19 times more volatile than Jeronimo Martins SGPS. It trades about 0.06 of its potential returns per unit of risk. Jeronimo Martins SGPS is currently generating about -0.03 per unit of risk. If you would invest 1,012 in Mission Produce on September 3, 2024 and sell it today you would earn a total of 318.00 from holding Mission Produce or generate 31.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mission Produce vs. Jeronimo Martins SGPS
Performance |
| Timeline |
| Mission Produce |
| Jeronimo Martins SGPS |
Mission Produce and Jeronimo Martins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mission Produce and Jeronimo Martins
The main advantage of trading using opposite Mission Produce and Jeronimo Martins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mission Produce 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' long position.| Mission Produce vs. The Chefs Warehouse | Mission Produce vs. The Andersons | Mission Produce vs. AMCON Distributing | Mission Produce vs. Performance Food Group |
| Jeronimo Martins vs. The Chefs Warehouse | Jeronimo Martins vs. Mission Produce | Jeronimo Martins vs. United Natural Foods | Jeronimo Martins vs. The Andersons |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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