Correlation Between Casio Computer and JERONIMO MARTINS
Can any of the company-specific risk be diversified away by investing in both Casio Computer and JERONIMO MARTINS 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 Casio Computer and JERONIMO MARTINS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casio Computer CoLtd and JERONIMO MARTINS UNADR2, you can compare the effects of market volatilities on Casio Computer and JERONIMO MARTINS 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 Casio Computer with a short position of JERONIMO MARTINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casio Computer and JERONIMO MARTINS.
Diversification Opportunities for Casio Computer and JERONIMO MARTINS
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Casio and JERONIMO is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Casio Computer CoLtd and JERONIMO MARTINS UNADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JERONIMO MARTINS UNADR2 and Casio Computer 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 Casio Computer CoLtd are associated (or correlated) with JERONIMO MARTINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JERONIMO MARTINS UNADR2 has no effect on the direction of Casio Computer i.e., Casio Computer and JERONIMO MARTINS go up and down completely randomly.
Pair Corralation between Casio Computer and JERONIMO MARTINS
Assuming the 90 days trading horizon Casio Computer CoLtd is expected to under-perform the JERONIMO MARTINS. But the stock apears to be less risky and, when comparing its historical volatility, Casio Computer CoLtd is 1.27 times less risky than JERONIMO MARTINS. The stock trades about -0.04 of its potential returns per unit of risk. The JERONIMO MARTINS UNADR2 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,564 in JERONIMO MARTINS UNADR2 on September 3, 2024 and sell it today you would earn a total of 56.00 from holding JERONIMO MARTINS UNADR2 or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Casio Computer CoLtd vs. JERONIMO MARTINS UNADR2
Performance |
| Timeline |
| Casio Computer CoLtd |
| JERONIMO MARTINS UNADR2 |
Casio Computer and JERONIMO MARTINS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casio Computer and JERONIMO MARTINS
The main advantage of trading using opposite Casio Computer and JERONIMO MARTINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casio Computer position performs unexpectedly, JERONIMO MARTINS 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 JERONIMO MARTINS will offset losses from the drop in JERONIMO MARTINS's long position.| Casio Computer vs. Apple Inc | Casio Computer vs. Samsung Electronics Co | Casio Computer vs. Samsung Electronics Co | Casio Computer vs. Sony Group |
| JERONIMO MARTINS vs. Casio Computer CoLtd | JERONIMO MARTINS vs. AEGEAN AIRLINES | JERONIMO MARTINS vs. Aegean Airlines SA | JERONIMO MARTINS vs. Check Point Software |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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