Correlation Between Just Eat and Lavide Holding
Can any of the company-specific risk be diversified away by investing in both Just Eat and Lavide Holding 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 Just Eat and Lavide Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Just Eat Takeaway and Lavide Holding NV, you can compare the effects of market volatilities on Just Eat and Lavide Holding 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 Just Eat with a short position of Lavide Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Just Eat and Lavide Holding.
Diversification Opportunities for Just Eat and Lavide Holding
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Just and Lavide is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Just Eat Takeaway and Lavide Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lavide Holding NV and Just Eat 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 Just Eat Takeaway are associated (or correlated) with Lavide Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lavide Holding NV has no effect on the direction of Just Eat i.e., Just Eat and Lavide Holding go up and down completely randomly.
Pair Corralation between Just Eat and Lavide Holding
Assuming the 90 days trading horizon Just Eat Takeaway is expected to generate 1.48 times more return on investment than Lavide Holding. However, Just Eat is 1.48 times more volatile than Lavide Holding NV. It trades about 0.34 of its potential returns per unit of risk. Lavide Holding NV is currently generating about -0.16 per unit of risk. If you would invest 1,095 in Just Eat Takeaway on August 31, 2024 and sell it today you would earn a total of 383.00 from holding Just Eat Takeaway or generate 34.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Just Eat Takeaway vs. Lavide Holding NV
Performance |
| Timeline |
| Just Eat Takeaway |
| Lavide Holding NV |
Just Eat and Lavide Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Just Eat and Lavide Holding
The main advantage of trading using opposite Just Eat and Lavide Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Just Eat position performs unexpectedly, Lavide Holding 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 Lavide Holding will offset losses from the drop in Lavide Holding's long position.| Just Eat vs. Prosus NV | Just Eat vs. Koninklijke Ahold Delhaize | Just Eat vs. Adyen NV | Just Eat vs. ASML Holding NV |
| Lavide Holding vs. Shell PLC | Lavide Holding vs. Holland Colours NV | Lavide Holding vs. New Sources Energy | Lavide Holding vs. Aegon NV |
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
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |