Correlation Between Jeudan and Roblon AS

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

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

Diversification Opportunities for Jeudan and Roblon AS

-0.45

Correlation Coefficient

Jeudan  Roblon AS

Very good diversification

The 3 months correlation between Jeudan and Roblon is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jeudan and Roblon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roblon AS and Jeudan 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 Jeudan are associated (or correlated) with Roblon AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roblon AS has no effect on the direction of Jeudan i.e., Jeudan and Roblon AS go up and down completely randomly.

Pair Corralation between Jeudan and Roblon AS

Assuming the 90 days trading horizon Jeudan is expected to under-perform the Roblon AS. In addition to that, Jeudan is 1.44 times more volatile than Roblon AS. It trades about 0.0 of its total potential returns per unit of risk. Roblon AS is currently generating about 0.05 per unit of volatility. If you would invest  9,400  in Roblon AS on October 11, 2024 and sell it today you would earn a total of  2,100  from holding Roblon AS or generate 22.34% return on investment over 90 days.

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

Jeudan  vs.  Roblon AS

Jeudan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jeudan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Roblon AS

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Roblon AS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating essential indicators, Roblon AS sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jeudan and Roblon AS

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

The idea behind Jeudan and Roblon AS 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.