Correlation Between Overstockcom and Jumia Technologies
Can any of the company-specific risk be diversified away by investing in both Overstockcom and Jumia Technologies 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 Overstockcom and Jumia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Overstockcom and Jumia Technologies AG, you can compare the effects of market volatilities on Overstockcom and Jumia Technologies 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 Overstockcom with a short position of Jumia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Overstockcom and Jumia Technologies.
Diversification Opportunities for Overstockcom and Jumia Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Overstockcom and Jumia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Overstockcom and Jumia Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumia Technologies and Overstockcom 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 Overstockcom are associated (or correlated) with Jumia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jumia Technologies has no effect on the direction of Overstockcom i.e., Overstockcom and Jumia Technologies go up and down completely randomly.
Pair Corralation between Overstockcom and Jumia Technologies
If you would invest 387.00 in Jumia Technologies AG on November 9, 2024 and sell it today you would earn a total of 16.00 from holding Jumia Technologies AG or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Overstockcom vs. Jumia Technologies AG
Performance |
| Timeline |
| Overstockcom |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Jumia Technologies |
Overstockcom and Jumia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Overstockcom and Jumia Technologies
The main advantage of trading using opposite Overstockcom and Jumia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Overstockcom position performs unexpectedly, Jumia Technologies 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 Jumia Technologies will offset losses from the drop in Jumia Technologies' long position.| Overstockcom vs. Etsy Inc | Overstockcom vs. Chewy Inc | Overstockcom vs. PDD Holdings | Overstockcom vs. Sea |
| Jumia Technologies vs. Sea | Jumia Technologies vs. MercadoLibre | Jumia Technologies vs. PDD Holdings | Jumia Technologies vs. JD Inc Adr |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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