Correlation Between Motor Oil and Jumbo SA
Can any of the company-specific risk be diversified away by investing in both Motor Oil and Jumbo SA 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 Motor Oil and Jumbo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Motor Oil Corinth and Jumbo SA, you can compare the effects of market volatilities on Motor Oil and Jumbo SA 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 Motor Oil with a short position of Jumbo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Motor Oil and Jumbo SA.
Diversification Opportunities for Motor Oil and Jumbo SA
Good diversification
The 3 months correlation between Motor and Jumbo is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Motor Oil Corinth and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA and Motor Oil 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 Motor Oil Corinth are associated (or correlated) with Jumbo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jumbo SA has no effect on the direction of Motor Oil i.e., Motor Oil and Jumbo SA go up and down completely randomly.
Pair Corralation between Motor Oil and Jumbo SA
Assuming the 90 days trading horizon Motor Oil Corinth is expected to under-perform the Jumbo SA. In addition to that, Motor Oil is 1.09 times more volatile than Jumbo SA. It trades about -0.16 of its total potential returns per unit of risk. Jumbo SA is currently generating about -0.05 per unit of volatility. If you would invest 2,500 in Jumbo SA on August 27, 2024 and sell it today you would lose (30.00) from holding Jumbo SA or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Motor Oil Corinth vs. Jumbo SA
Performance |
| Timeline |
| Motor Oil Corinth |
| Jumbo SA |
Motor Oil and Jumbo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Motor Oil and Jumbo SA
The main advantage of trading using opposite Motor Oil and Jumbo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Motor Oil position performs unexpectedly, Jumbo SA 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 Jumbo SA will offset losses from the drop in Jumbo SA's long position.| Motor Oil vs. Mytilineos SA | Motor Oil vs. Hellenic Petroleum SA | Motor Oil vs. Greek Organization of | Motor Oil vs. Hellenic Telecommunications Organization |
| Jumbo SA vs. Autohellas SA | Jumbo SA vs. BriQ Properties Real | Jumbo SA vs. Thrace Plastics Holding | Jumbo SA vs. Kri Kri Milk Industry |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |