Correlation Between Dupont De and Jeronimo Martins
Can any of the company-specific risk be diversified away by investing in both Dupont De 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 Dupont De and Jeronimo Martins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Jeronimo Martins SGPS, you can compare the effects of market volatilities on Dupont De 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 Dupont De with a short position of Jeronimo Martins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Jeronimo Martins.
Diversification Opportunities for Dupont De and Jeronimo Martins
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dupont and Jeronimo is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Jeronimo Martins SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeronimo Martins SGPS and Dupont De 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 Dupont De Nemours 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 SGPS has no effect on the direction of Dupont De i.e., Dupont De and Jeronimo Martins go up and down completely randomly.
Pair Corralation between Dupont De and Jeronimo Martins
Allowing for the 90-day total investment horizon Dupont De is expected to generate 36.62 times less return on investment than Jeronimo Martins. But when comparing it to its historical volatility, Dupont De Nemours is 1.46 times less risky than Jeronimo Martins. It trades about 0.01 of its potential returns per unit of risk. Jeronimo Martins SGPS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,683 in Jeronimo Martins SGPS on August 29, 2024 and sell it today you would earn a total of 150.00 from holding Jeronimo Martins SGPS or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Jeronimo Martins SGPS
Performance |
| Timeline |
| Dupont De Nemours |
| Jeronimo Martins SGPS |
Dupont De and Jeronimo Martins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Jeronimo Martins
The main advantage of trading using opposite Dupont De and Jeronimo Martins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De 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' long position.| Dupont De vs. Direxion Daily FTSE | Dupont De vs. Collegium Pharmaceutical | Dupont De vs. KKR Co LP | Dupont De vs. iShares Dividend and |
| Jeronimo Martins vs. Sonae SGPS SA | Jeronimo Martins vs. Galp Energia SGPS | Jeronimo Martins vs. EDP Energias | Jeronimo Martins vs. Altri SGPS SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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