Correlation Between Pandora AS and Jeudan

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

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

Diversification Opportunities for Pandora AS and Jeudan

-0.69

Correlation Coefficient

Pandora AS  Jeudan

Excellent diversification

The 3 months correlation between Pandora and Jeudan is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pandora AS and Jeudan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeudan and Pandora AS 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 Pandora AS are associated (or correlated) with Jeudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeudan has no effect on the direction of Pandora AS i.e., Pandora AS and Jeudan go up and down completely randomly.

Pair Corralation between Pandora AS and Jeudan

Assuming the 90 days trading horizon Pandora AS is expected to generate 2.58 times more return on investment than Jeudan. However, Pandora AS is 2.58 times more volatile than Jeudan. It trades about 0.03 of its potential returns per unit of risk. Jeudan is currently generating about 0.0 per unit of risk. If you would invest  129,450  in Pandora AS on October 24, 2024 and sell it today you would earn a total of  900.00  from holding Pandora AS or generate 0.7% return on investment over 90 days.

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

Pandora AS  vs.  Jeudan

Pandora AS

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pandora AS are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental indicators, Pandora AS sustained solid returns over the last few months and may actually be approaching a breakup point.

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 weak 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.

Pair Trading with Pandora AS and Jeudan

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

The idea behind Pandora AS and Jeudan 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.