Correlation Between Jumbo SA and As Commercial
Can any of the company-specific risk be diversified away by investing in both Jumbo SA and As Commercial 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 Jumbo SA and As Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jumbo SA and As Commercial Industrial, you can compare the effects of market volatilities on Jumbo SA and As Commercial 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 Jumbo SA with a short position of As Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jumbo SA and As Commercial.
Diversification Opportunities for Jumbo SA and As Commercial
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jumbo and ASCO is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jumbo SA and As Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on As Commercial Industrial and Jumbo SA 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 Jumbo SA are associated (or correlated) with As Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of As Commercial Industrial has no effect on the direction of Jumbo SA i.e., Jumbo SA and As Commercial go up and down completely randomly.
Pair Corralation between Jumbo SA and As Commercial
Assuming the 90 days trading horizon Jumbo SA is expected to under-perform the As Commercial. But the stock apears to be less risky and, when comparing its historical volatility, Jumbo SA is 1.08 times less risky than As Commercial. The stock trades about -0.01 of its potential returns per unit of risk. The As Commercial Industrial is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 260.00 in As Commercial Industrial on August 31, 2024 and sell it today you would earn a total of 14.00 from holding As Commercial Industrial or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jumbo SA vs. As Commercial Industrial
Performance |
| Timeline |
| Jumbo SA |
| As Commercial Industrial |
Jumbo SA and As Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jumbo SA and As Commercial
The main advantage of trading using opposite Jumbo SA and As Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jumbo SA position performs unexpectedly, As Commercial 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 As Commercial will offset losses from the drop in As Commercial's long position.| Jumbo SA vs. Greek Organization of | Jumbo SA vs. Mytilineos SA | Jumbo SA vs. Motor Oil Corinth | Jumbo SA vs. Hellenic Telecommunications Organization |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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