Correlation Between JSL SA and Mondelez International
Can any of the company-specific risk be diversified away by investing in both JSL SA and Mondelez International 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 JSL SA and Mondelez International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JSL SA and Mondelez International, you can compare the effects of market volatilities on JSL SA and Mondelez International 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 JSL SA with a short position of Mondelez International. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSL SA and Mondelez International.
Diversification Opportunities for JSL SA and Mondelez International
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JSL and Mondelez is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding JSL SA and Mondelez International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mondelez International and JSL 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 JSL SA are associated (or correlated) with Mondelez International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mondelez International has no effect on the direction of JSL SA i.e., JSL SA and Mondelez International go up and down completely randomly.
Pair Corralation between JSL SA and Mondelez International
Assuming the 90 days trading horizon JSL SA is expected to under-perform the Mondelez International. In addition to that, JSL SA is 3.34 times more volatile than Mondelez International. It trades about -0.13 of its total potential returns per unit of risk. Mondelez International is currently generating about -0.12 per unit of volatility. If you would invest 20,000 in Mondelez International on August 30, 2024 and sell it today you would lose (771.00) from holding Mondelez International or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSL SA vs. Mondelez International
Performance |
| Timeline |
| JSL SA |
| Mondelez International |
JSL SA and Mondelez International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSL SA and Mondelez International
The main advantage of trading using opposite JSL SA and Mondelez International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSL SA position performs unexpectedly, Mondelez International 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 Mondelez International will offset losses from the drop in Mondelez International's long position.| JSL SA vs. Cognizant Technology Solutions | JSL SA vs. CM Hospitalar SA | JSL SA vs. CVS Health | JSL SA vs. Automatic Data Processing |
| Mondelez International vs. CM Hospitalar SA | Mondelez International vs. Cognizant Technology Solutions | Mondelez International vs. CVS Health | Mondelez International vs. Dell Technologies |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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