Correlation Between Chocoladefabriken and Jardine Matheson

Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Jardine Matheson 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 Chocoladefabriken and Jardine Matheson into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chocoladefabriken Lindt Spruengli and Jardine Matheson Holdings, you can compare the effects of market volatilities on Chocoladefabriken and Jardine Matheson 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 Chocoladefabriken with a short position of Jardine Matheson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Jardine Matheson.

Diversification Opportunities for Chocoladefabriken and Jardine Matheson

0.0

Correlation Coefficient

Chocoladefabriken  Jardine Matheson

Pay attention - limited upside

The 3 months correlation between Chocoladefabriken and Jardine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Jardine Matheson Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jardine Matheson Holdings and Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli are associated (or correlated) with Jardine Matheson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jardine Matheson Holdings has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Jardine Matheson go up and down completely randomly.

Pair Corralation between Chocoladefabriken and Jardine Matheson

If you would invest  9,980,000  in Chocoladefabriken Lindt Spruengli on October 5, 2024 and sell it today you would earn a total of  20,000  from holding Chocoladefabriken Lindt Spruengli or generate 0.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Chocoladefabriken Lindt Spruen  vs.  Jardine Matheson Holdings

Chocoladefabriken Lindt

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Chocoladefabriken Lindt Spruengli has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Jardine Matheson Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jardine Matheson Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Jardine Matheson is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Chocoladefabriken and Jardine Matheson

The main advantage of trading using opposite Chocoladefabriken and Jardine Matheson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Jardine Matheson 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 Jardine Matheson will offset losses from the drop in Jardine Matheson's long position.

The idea behind Chocoladefabriken Lindt Spruengli and Jardine Matheson Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.