Correlation Between Jumbo SA and Public Power
Can any of the company-specific risk be diversified away by investing in both Jumbo SA and Public Power 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 Public Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jumbo SA and Public Power, you can compare the effects of market volatilities on Jumbo SA and Public Power 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 Public Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jumbo SA and Public Power.
Diversification Opportunities for Jumbo SA and Public Power
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jumbo and Public is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jumbo SA and Public Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Power 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 Public Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Power has no effect on the direction of Jumbo SA i.e., Jumbo SA and Public Power go up and down completely randomly.
Pair Corralation between Jumbo SA and Public Power
Assuming the 90 days trading horizon Jumbo SA is expected to generate 0.71 times more return on investment than Public Power. However, Jumbo SA is 1.41 times less risky than Public Power. It trades about -0.02 of its potential returns per unit of risk. Public Power is currently generating about -0.08 per unit of risk. If you would invest 2,500 in Jumbo SA on August 29, 2024 and sell it today you would lose (16.00) from holding Jumbo SA or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jumbo SA vs. Public Power
Performance |
| Timeline |
| Jumbo SA |
| Public Power |
Jumbo SA and Public Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jumbo SA and Public Power
The main advantage of trading using opposite Jumbo SA and Public Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jumbo SA position performs unexpectedly, Public Power 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 Public Power will offset losses from the drop in Public Power'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 |
| Public Power vs. Mytilineos SA | Public Power vs. Greek Organization of | Public Power vs. Hellenic Telecommunications Organization | Public Power vs. Alpha Services and |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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