Correlation Between Jumbo SA and Athens Water
Can any of the company-specific risk be diversified away by investing in both Jumbo SA and Athens Water 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 Athens Water into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jumbo SA and Athens Water Supply, you can compare the effects of market volatilities on Jumbo SA and Athens Water 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 Athens Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jumbo SA and Athens Water.
Diversification Opportunities for Jumbo SA and Athens Water
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jumbo and Athens is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jumbo SA and Athens Water Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athens Water Supply 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 Athens Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athens Water Supply has no effect on the direction of Jumbo SA i.e., Jumbo SA and Athens Water go up and down completely randomly.
Pair Corralation between Jumbo SA and Athens Water
Assuming the 90 days trading horizon Jumbo SA is expected to under-perform the Athens Water. In addition to that, Jumbo SA is 1.29 times more volatile than Athens Water Supply. It trades about -0.05 of its total potential returns per unit of risk. Athens Water Supply is currently generating about 0.1 per unit of volatility. If you would invest 568.00 in Athens Water Supply on August 27, 2024 and sell it today you would earn a total of 10.00 from holding Athens Water Supply or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jumbo SA vs. Athens Water Supply
Performance |
| Timeline |
| Jumbo SA |
| Athens Water Supply |
Jumbo SA and Athens Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jumbo SA and Athens Water
The main advantage of trading using opposite Jumbo SA and Athens Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jumbo SA position performs unexpectedly, Athens Water 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 Athens Water will offset losses from the drop in Athens Water's long position.| Jumbo SA vs. Autohellas SA | Jumbo SA vs. BriQ Properties Real | Jumbo SA vs. Thrace Plastics Holding | Jumbo SA vs. Kri Kri Milk Industry |
| Athens Water vs. Hellenic Petroleum SA | Athens Water vs. Mytilineos SA | Athens Water vs. Hellenic Telecommunications Organization | Athens Water vs. Public Power |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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