Correlation Between Hellenic Exchanges and Jumbo SA

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

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

Diversification Opportunities for Hellenic Exchanges and Jumbo SA

0.48

Correlation Coefficient

Hellenic Exchanges  Jumbo SA

Very weak diversification

The 3 months correlation between Hellenic and Jumbo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Exchanges and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA and Hellenic Exchanges 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 Hellenic Exchanges 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 Hellenic Exchanges i.e., Hellenic Exchanges and Jumbo SA go up and down completely randomly.

Pair Corralation between Hellenic Exchanges and Jumbo SA

Assuming the 90 days trading horizon Hellenic Exchanges is expected to under-perform the Jumbo SA. But the stock apears to be less risky and, when comparing its historical volatility, Hellenic Exchanges is 1.19 times less risky than Jumbo SA. The stock trades about -0.01 of its potential returns per unit of risk. The Jumbo SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,438  in Jumbo SA on September 13, 2024 and sell it today you would earn a total of  156.00  from holding Jumbo SA or generate 6.4% return on investment over 90 days.

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

Hellenic Exchanges   vs.  Jumbo SA

Hellenic Exchanges

Risk-Adjusted Performance

0 of 100

Very Weak

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

Jumbo SA

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jumbo SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Jumbo SA may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Hellenic Exchanges and Jumbo SA

The main advantage of trading using opposite Hellenic Exchanges and Jumbo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Exchanges 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.

The idea behind Hellenic Exchanges and Jumbo SA 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.