Correlation Between Jumbo SA and Autohellas
Can any of the company-specific risk be diversified away by investing in both Jumbo SA and Autohellas 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 Autohellas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jumbo SA and Autohellas SA, you can compare the effects of market volatilities on Jumbo SA and Autohellas 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 Autohellas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jumbo SA and Autohellas.
Diversification Opportunities for Jumbo SA and Autohellas
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jumbo and Autohellas is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jumbo SA and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas 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 Autohellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohellas SA has no effect on the direction of Jumbo SA i.e., Jumbo SA and Autohellas go up and down completely randomly.
Pair Corralation between Jumbo SA and Autohellas
Assuming the 90 days trading horizon Jumbo SA is expected to generate 0.73 times more return on investment than Autohellas. However, Jumbo SA is 1.37 times less risky than Autohellas. It trades about -0.01 of its potential returns per unit of risk. Autohellas SA is currently generating about -0.16 per unit of risk. If you would invest 2,500 in Jumbo SA on August 31, 2024 and sell it today you would lose (12.00) from holding Jumbo SA or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jumbo SA vs. Autohellas SA
Performance |
| Timeline |
| Jumbo SA |
| Autohellas SA |
Jumbo SA and Autohellas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jumbo SA and Autohellas
The main advantage of trading using opposite Jumbo SA and Autohellas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jumbo SA position performs unexpectedly, Autohellas 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 Autohellas will offset losses from the drop in Autohellas' 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 |
| Autohellas vs. National Bank of | Autohellas vs. EL D Mouzakis | Autohellas vs. Lampsa Hellenic Hotels | Autohellas vs. Austriacard Holdings AG |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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