Correlation Between Jumbo SA and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Jumbo SA and Mytilineos 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 Mytilineos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jumbo SA and Mytilineos SA, you can compare the effects of market volatilities on Jumbo SA and Mytilineos 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 Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jumbo SA and Mytilineos.
Diversification Opportunities for Jumbo SA and Mytilineos
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jumbo and Mytilineos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jumbo SA and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA 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 Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Jumbo SA i.e., Jumbo SA and Mytilineos go up and down completely randomly.
Pair Corralation between Jumbo SA and Mytilineos
Assuming the 90 days trading horizon Jumbo SA is expected to generate 0.74 times more return on investment than Mytilineos. However, Jumbo SA is 1.36 times less risky than Mytilineos. It trades about -0.05 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.08 per unit of risk. If you would invest 2,500 in Jumbo SA on August 27, 2024 and sell it today you would lose (30.00) from holding Jumbo SA or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jumbo SA vs. Mytilineos SA
Performance |
| Timeline |
| Jumbo SA |
| Mytilineos SA |
Jumbo SA and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jumbo SA and Mytilineos
The main advantage of trading using opposite Jumbo SA and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jumbo SA position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' 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 |
| Mytilineos vs. National Bank of | Mytilineos vs. EL D Mouzakis | Mytilineos vs. Lampsa Hellenic Hotels | Mytilineos vs. Eurobank Ergasias Services |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |