Correlation Between Jumbo SA and Hellenic Exchanges

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

By analyzing existing cross correlation between Jumbo SA and Hellenic Exchanges , you can compare the effects of market volatilities on Jumbo SA and Hellenic Exchanges 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 Hellenic Exchanges. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jumbo SA and Hellenic Exchanges.

Diversification Opportunities for Jumbo SA and Hellenic Exchanges

0.62

Correlation Coefficient

Jumbo SA  Hellenic Exchanges

Poor diversification

The 3 months correlation between Jumbo and Hellenic is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jumbo SA and Hellenic Exchanges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Exchanges 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 Hellenic Exchanges. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Exchanges has no effect on the direction of Jumbo SA i.e., Jumbo SA and Hellenic Exchanges go up and down completely randomly.

Pair Corralation between Jumbo SA and Hellenic Exchanges

Assuming the 90 days trading horizon Jumbo SA is expected to under-perform the Hellenic Exchanges. But the stock apears to be less risky and, when comparing its historical volatility, Jumbo SA is 1.02 times less risky than Hellenic Exchanges. The stock trades about -0.04 of its potential returns per unit of risk. The Hellenic Exchanges is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  449.00  in Hellenic Exchanges on October 21, 2024 and sell it today you would earn a total of  28.00  from holding Hellenic Exchanges or generate 6.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Jumbo SA  vs.  Hellenic Exchanges

Jumbo SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jumbo SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Jumbo SA is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Hellenic Exchanges

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hellenic Exchanges are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Hellenic Exchanges may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Jumbo SA and Hellenic Exchanges

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

The idea behind Jumbo SA and Hellenic Exchanges 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.