Correlation Between BBB Foods and Jumbo SA
Can any of the company-specific risk be diversified away by investing in both BBB Foods 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 BBB Foods and Jumbo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BBB Foods and Jumbo SA, you can compare the effects of market volatilities on BBB Foods 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 BBB Foods with a short position of Jumbo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBB Foods and Jumbo SA.
Diversification Opportunities for BBB Foods and Jumbo SA
Pay attention - limited upside
The 3 months correlation between BBB and Jumbo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BBB Foods and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA and BBB Foods 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 BBB Foods 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 BBB Foods i.e., BBB Foods and Jumbo SA go up and down completely randomly.
Pair Corralation between BBB Foods and Jumbo SA
If you would invest 2,208 in BBB Foods on September 12, 2024 and sell it today you would earn a total of 701.00 from holding BBB Foods or generate 31.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 13.71% |
| Values | Daily Returns |
BBB Foods vs. Jumbo SA
Performance |
| Timeline |
| BBB Foods |
| Jumbo SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BBB Foods and Jumbo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBB Foods and Jumbo SA
The main advantage of trading using opposite BBB Foods and Jumbo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBB Foods 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.| BBB Foods vs. Costco Wholesale Corp | BBB Foods vs. BJs Wholesale Club | BBB Foods vs. Dollar Tree | BBB Foods vs. Dollar General |
| Jumbo SA vs. Western Asset Investment | Jumbo SA vs. Micron Technology | Jumbo SA vs. MGIC Investment Corp | Jumbo SA vs. Vishay Intertechnology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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