Correlation Between SCANDION ONC and JERONIMO MARTINS
Can any of the company-specific risk be diversified away by investing in both SCANDION ONC and JERONIMO MARTINS 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 SCANDION ONC and JERONIMO MARTINS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDION ONC DK 0735 and JERONIMO MARTINS UNADR2, you can compare the effects of market volatilities on SCANDION ONC and JERONIMO MARTINS 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 SCANDION ONC with a short position of JERONIMO MARTINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDION ONC and JERONIMO MARTINS.
Diversification Opportunities for SCANDION ONC and JERONIMO MARTINS
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCANDION and JERONIMO is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding SCANDION ONC DK 0735 and JERONIMO MARTINS UNADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JERONIMO MARTINS UNADR2 and SCANDION ONC 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 SCANDION ONC DK 0735 are associated (or correlated) with JERONIMO MARTINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JERONIMO MARTINS UNADR2 has no effect on the direction of SCANDION ONC i.e., SCANDION ONC and JERONIMO MARTINS go up and down completely randomly.
Pair Corralation between SCANDION ONC and JERONIMO MARTINS
Assuming the 90 days horizon SCANDION ONC DK 0735 is expected to under-perform the JERONIMO MARTINS. In addition to that, SCANDION ONC is 2.8 times more volatile than JERONIMO MARTINS UNADR2. It trades about -0.14 of its total potential returns per unit of risk. JERONIMO MARTINS UNADR2 is currently generating about 0.08 per unit of volatility. If you would invest 3,260 in JERONIMO MARTINS UNADR2 on September 23, 2024 and sell it today you would earn a total of 300.00 from holding JERONIMO MARTINS UNADR2 or generate 9.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.48% |
Values | Daily Returns |
SCANDION ONC DK 0735 vs. JERONIMO MARTINS UNADR2
Performance |
Timeline |
SCANDION ONC DK |
JERONIMO MARTINS UNADR2 |
SCANDION ONC and JERONIMO MARTINS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SCANDION ONC and JERONIMO MARTINS
The main advantage of trading using opposite SCANDION ONC and JERONIMO MARTINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDION ONC position performs unexpectedly, JERONIMO MARTINS 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 JERONIMO MARTINS will offset losses from the drop in JERONIMO MARTINS's long position.SCANDION ONC vs. Novo Nordisk AS | SCANDION ONC vs. CSL LTD SPONADR | SCANDION ONC vs. CSL Limited | SCANDION ONC vs. Mercedes Benz Group AG |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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