Correlation Between Secoo Holding and Jumia Technologies
Can any of the company-specific risk be diversified away by investing in both Secoo Holding 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 Secoo Holding and Jumia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secoo Holding and Jumia Technologies AG, you can compare the effects of market volatilities on Secoo Holding 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 Secoo Holding with a short position of Jumia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secoo Holding and Jumia Technologies.
Diversification Opportunities for Secoo Holding and Jumia Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Secoo and Jumia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Secoo Holding and Jumia Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumia Technologies and Secoo Holding 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 Secoo Holding 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 Secoo Holding i.e., Secoo Holding and Jumia Technologies go up and down completely randomly.
Pair Corralation between Secoo Holding 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 |
Secoo Holding vs. Jumia Technologies AG
Performance |
| Timeline |
| Secoo Holding |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Jumia Technologies |
Secoo Holding and Jumia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secoo Holding and Jumia Technologies
The main advantage of trading using opposite Secoo Holding and Jumia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secoo Holding 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.| Secoo Holding vs. Kidpik Corp | Secoo Holding vs. Qurate Retail Series | Secoo Holding vs. Natural Health Trend | Secoo Holding vs. Liquidity Services |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |