Correlation Between Philippos Nakas and Jumbo SA
Can any of the company-specific risk be diversified away by investing in both Philippos Nakas 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 Philippos Nakas and Jumbo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philippos Nakas SA and Jumbo SA, you can compare the effects of market volatilities on Philippos Nakas 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 Philippos Nakas with a short position of Jumbo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philippos Nakas and Jumbo SA.
Diversification Opportunities for Philippos Nakas and Jumbo SA
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Philippos and Jumbo is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Philippos Nakas SA and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA and Philippos Nakas 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 Philippos Nakas SA 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 Philippos Nakas i.e., Philippos Nakas and Jumbo SA go up and down completely randomly.
Pair Corralation between Philippos Nakas and Jumbo SA
Assuming the 90 days trading horizon Philippos Nakas SA is expected to under-perform the Jumbo SA. In addition to that, Philippos Nakas is 2.01 times more volatile than Jumbo SA. It trades about -0.07 of its total potential returns per unit of risk. Jumbo SA is currently generating about 0.2 per unit of volatility. If you would invest 2,448 in Jumbo SA on September 5, 2024 and sell it today you would earn a total of 132.00 from holding Jumbo SA or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Philippos Nakas SA vs. Jumbo SA
Performance |
| Timeline |
| Philippos Nakas SA |
| Jumbo SA |
Philippos Nakas and Jumbo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philippos Nakas and Jumbo SA
The main advantage of trading using opposite Philippos Nakas and Jumbo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philippos Nakas 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.| Philippos Nakas vs. Jumbo SA | Philippos Nakas vs. Mytilineos SA | Philippos Nakas vs. Greek Organization of | Philippos Nakas vs. Public Power |
| Jumbo SA vs. Greek Organization of | Jumbo SA vs. Mytilineos SA | Jumbo SA vs. Motor Oil Corinth | Jumbo SA vs. Hellenic Telecommunications Organization |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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