Correlation Between Autohellas and Jumbo SA
Can any of the company-specific risk be diversified away by investing in both Autohellas 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 Autohellas and Jumbo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohellas SA and Jumbo SA, you can compare the effects of market volatilities on Autohellas 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 Autohellas with a short position of Jumbo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohellas and Jumbo SA.
Diversification Opportunities for Autohellas and Jumbo SA
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autohellas and Jumbo is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Autohellas SA and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA and Autohellas 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 Autohellas 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 Autohellas i.e., Autohellas and Jumbo SA go up and down completely randomly.
Pair Corralation between Autohellas and Jumbo SA
Assuming the 90 days trading horizon Autohellas SA is expected to under-perform the Jumbo SA. In addition to that, Autohellas is 1.28 times more volatile than Jumbo SA. It trades about -0.21 of its total potential returns per unit of risk. Jumbo SA is currently generating about -0.19 per unit of volatility. If you would invest 2,540 in Jumbo SA on August 24, 2024 and sell it today you would lose (120.00) from holding Jumbo SA or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autohellas SA vs. Jumbo SA
Performance |
| Timeline |
| Autohellas SA |
| Jumbo SA |
Autohellas and Jumbo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohellas and Jumbo SA
The main advantage of trading using opposite Autohellas and Jumbo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohellas 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.| Autohellas vs. Daios Plastics SA | Autohellas vs. Technical Olympic SA | Autohellas vs. Athens Medical CSA | Autohellas vs. Foodlink AE |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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