Correlation Between Greenvolt Energias and Jeronimo Martins
Can any of the company-specific risk be diversified away by investing in both Greenvolt Energias 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 Greenvolt Energias and Jeronimo Martins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenvolt Energias Renovaveis and Jeronimo Martins SGPS, you can compare the effects of market volatilities on Greenvolt Energias 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 Greenvolt Energias with a short position of Jeronimo Martins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenvolt Energias and Jeronimo Martins.
Diversification Opportunities for Greenvolt Energias and Jeronimo Martins
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Greenvolt and Jeronimo is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Greenvolt Energias Renovaveis 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 Greenvolt Energias 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 Greenvolt Energias Renovaveis 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 Greenvolt Energias i.e., Greenvolt Energias and Jeronimo Martins go up and down completely randomly.
Pair Corralation between Greenvolt Energias and Jeronimo Martins
Assuming the 90 days trading horizon Greenvolt Energias Renovaveis is expected to generate 0.31 times more return on investment than Jeronimo Martins. However, Greenvolt Energias Renovaveis is 3.19 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 -0.02 per unit of risk. If you would invest 815.00 in Greenvolt Energias Renovaveis on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Greenvolt Energias Renovaveis or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.4% |
| Values | Daily Returns |
Greenvolt Energias Renovaveis vs. Jeronimo Martins SGPS
Performance |
| Timeline |
| Greenvolt Energias |
| Jeronimo Martins SGPS |
Greenvolt Energias and Jeronimo Martins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenvolt Energias and Jeronimo Martins
The main advantage of trading using opposite Greenvolt Energias and Jeronimo Martins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenvolt Energias 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.| Greenvolt Energias vs. Altri SGPS SA | Greenvolt Energias vs. The Navigator | Greenvolt Energias vs. Galp Energia SGPS | Greenvolt Energias vs. EDP Renovaveis |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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