Correlation Between Sysco and Jerónimo Martins
Can any of the company-specific risk be diversified away by investing in both Sysco and Jerónimo Martins 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 Sysco and Jerónimo Martins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sysco and Jernimo Martins SGPS, you can compare the effects of market volatilities on Sysco and Jerónimo Martins 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 Sysco with a short position of Jerónimo Martins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sysco and Jerónimo Martins.
Diversification Opportunities for Sysco and Jerónimo Martins
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sysco and Jerónimo is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sysco and Jernimo Martins SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jernimo Martins SGPS and Sysco 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 Sysco are associated (or correlated) with Jerónimo Martins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jernimo Martins SGPS has no effect on the direction of Sysco i.e., Sysco and Jerónimo Martins go up and down completely randomly.
Pair Corralation between Sysco and Jerónimo Martins
Assuming the 90 days horizon Sysco is expected to under-perform the Jerónimo Martins. But the stock apears to be less risky and, when comparing its historical volatility, Sysco is 1.11 times less risky than Jerónimo Martins. The stock trades about -0.04 of its potential returns per unit of risk. The Jernimo Martins SGPS is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,806 in Jernimo Martins SGPS on November 30, 2024 and sell it today you would earn a total of 248.00 from holding Jernimo Martins SGPS or generate 13.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sysco vs. Jernimo Martins SGPS
Performance |
| Timeline |
| Sysco |
| Jernimo Martins SGPS |
Sysco and Jerónimo Martins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sysco and Jerónimo Martins
The main advantage of trading using opposite Sysco and Jerónimo Martins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sysco position performs unexpectedly, Jerónimo Martins 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 Jerónimo Martins will offset losses from the drop in Jerónimo Martins' long position.| Sysco vs. Entravision Communications | Sysco vs. Citic Telecom International | Sysco vs. Grupo Carso SAB | Sysco vs. Chengdu PUTIAN Telecommunications |
| Jerónimo Martins vs. CALTAGIRONE EDITORE | Jerónimo Martins vs. Scandinavian Tobacco Group | Jerónimo Martins vs. SOUTHWEST AIRLINES | Jerónimo Martins vs. Xiwang Special Steel |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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