Correlation Between Just Eat and Ease2pay

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Can any of the company-specific risk be diversified away by investing in both Just Eat and Ease2pay 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 Just Eat and Ease2pay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Just Eat Takeaway and Ease2pay NV, you can compare the effects of market volatilities on Just Eat and Ease2pay 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 Just Eat with a short position of Ease2pay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Just Eat and Ease2pay.

Diversification Opportunities for Just Eat and Ease2pay

JustEase2payDiversified AwayJustEase2payDiversified Away100%
-0.38
  Correlation Coefficient

Very good diversification

The 3 months correlation between Just and Ease2pay is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Just Eat Takeaway and Ease2pay NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ease2pay NV and Just Eat 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 Just Eat Takeaway are associated (or correlated) with Ease2pay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ease2pay NV has no effect on the direction of Just Eat i.e., Just Eat and Ease2pay go up and down completely randomly.

Pair Corralation between Just Eat and Ease2pay

Assuming the 90 days trading horizon Just Eat Takeaway is expected to generate 0.61 times more return on investment than Ease2pay. However, Just Eat Takeaway is 1.63 times less risky than Ease2pay. It trades about -0.01 of its potential returns per unit of risk. Ease2pay NV is currently generating about -0.04 per unit of risk. If you would invest  2,107  in Just Eat Takeaway on September 27, 2024 and sell it today you would lose (731.00) from holding Just Eat Takeaway or give up 34.69% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

Just Eat Takeaway  vs.  Ease2pay NV

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -20-1001020
JavaScript chart by amCharts 3.21.15TKWY EAS2P
       Timeline  
Just Eat Takeaway 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Just Eat Takeaway has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Just Eat is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecDec111213141516
Ease2pay NV 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ease2pay NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15NovDecDec0.40.420.440.460.480.50.52

Just Eat and Ease2pay Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.95-8.2-5.45-2.7-0.04582.695.488.2611.0513.83 0.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15TKWY EAS2P
       Returns  

Pair Trading with Just Eat and Ease2pay

The main advantage of trading using opposite Just Eat and Ease2pay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Just Eat position performs unexpectedly, Ease2pay 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 Ease2pay will offset losses from the drop in Ease2pay's long position.
The idea behind Just Eat Takeaway and Ease2pay NV 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.
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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