Correlation Between Eni SPA and Jura Energy
Can any of the company-specific risk be diversified away by investing in both Eni SPA and Jura Energy 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 Eni SPA and Jura Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eni SpA ADR and Jura Energy, you can compare the effects of market volatilities on Eni SPA and Jura Energy 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 Eni SPA with a short position of Jura Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eni SPA and Jura Energy.
Diversification Opportunities for Eni SPA and Jura Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eni and Jura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eni SpA ADR and Jura Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jura Energy and Eni SPA 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 Eni SpA ADR are associated (or correlated) with Jura Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jura Energy has no effect on the direction of Eni SPA i.e., Eni SPA and Jura Energy go up and down completely randomly.
Pair Corralation between Eni SPA and Jura Energy
Taking into account the 90-day investment horizon Eni SpA ADR is expected to generate 0.49 times more return on investment than Jura Energy. However, Eni SpA ADR is 2.03 times less risky than Jura Energy. It trades about -0.01 of its potential returns per unit of risk. Jura Energy is currently generating about -0.06 per unit of risk. If you would invest 3,082 in Eni SpA ADR on August 27, 2024 and sell it today you would lose (181.00) from holding Eni SpA ADR or give up 5.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eni SpA ADR vs. Jura Energy
Performance |
| Timeline |
| Eni SpA ADR |
| Jura Energy |
Eni SPA and Jura Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eni SPA and Jura Energy
The main advantage of trading using opposite Eni SPA and Jura Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eni SPA position performs unexpectedly, Jura Energy 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 Jura Energy will offset losses from the drop in Jura Energy's long position.| Eni SPA vs. TotalEnergies SE ADR | Eni SPA vs. Ecopetrol SA ADR | Eni SPA vs. Shell PLC ADR | Eni SPA vs. Petroleo Brasileiro Petrobras |
| Jura Energy vs. Petroleo Brasileiro Petrobras | Jura Energy vs. Equinor ASA ADR | Jura Energy vs. Eni SpA ADR | Jura Energy vs. YPF Sociedad Anonima |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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