Correlation Between Jumbo SA and Elton International
Can any of the company-specific risk be diversified away by investing in both Jumbo SA and Elton International 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 Jumbo SA and Elton International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jumbo SA and Elton International Trading, you can compare the effects of market volatilities on Jumbo SA and Elton International 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 Jumbo SA with a short position of Elton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jumbo SA and Elton International.
Diversification Opportunities for Jumbo SA and Elton International
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jumbo and Elton is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jumbo SA and Elton International Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elton International and Jumbo SA 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 Jumbo SA are associated (or correlated) with Elton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elton International has no effect on the direction of Jumbo SA i.e., Jumbo SA and Elton International go up and down completely randomly.
Pair Corralation between Jumbo SA and Elton International
Assuming the 90 days trading horizon Jumbo SA is expected to generate 0.71 times more return on investment than Elton International. However, Jumbo SA is 1.41 times less risky than Elton International. It trades about 0.27 of its potential returns per unit of risk. Elton International Trading is currently generating about 0.02 per unit of risk. If you would invest 2,488 in Jumbo SA on September 12, 2024 and sell it today you would earn a total of 170.00 from holding Jumbo SA or generate 6.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jumbo SA vs. Elton International Trading
Performance |
Timeline |
Jumbo SA |
Elton International |
Jumbo SA and Elton International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jumbo SA and Elton International
The main advantage of trading using opposite Jumbo SA and Elton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jumbo SA position performs unexpectedly, Elton International 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 Elton International will offset losses from the drop in Elton International's long position.Jumbo SA vs. Greek Organization of | Jumbo SA vs. Mytilineos SA | Jumbo SA vs. Motor Oil Corinth | Jumbo SA vs. Hellenic Telecommunications Organization |
Elton International vs. Autohellas SA | Elton International vs. Admie Holding SA | Elton International vs. Hellenic Petroleum SA | Elton International vs. Jumbo SA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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