Correlation Between Jumia Technologies and Emera Incorporated

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

Diversification Opportunities for Jumia Technologies and Emera Incorporated

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Jumia and Emera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jumia Technologies AG and Emera Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Incorporated and Jumia Technologies 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 Jumia Technologies AG are associated (or correlated) with Emera Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Incorporated has no effect on the direction of Jumia Technologies i.e., Jumia Technologies and Emera Incorporated go up and down completely randomly.

Pair Corralation between Jumia Technologies and Emera Incorporated

If you would invest  895.00  in Jumia Technologies AG on December 30, 2023 and sell it today you would lose (383.00) from holding Jumia Technologies AG or give up 42.79% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Jumia Technologies AG  vs.  Emera Incorporated

 Performance 
       Timeline  
Jumia Technologies 

Risk-Adjusted Performance

9 of 100

 
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OK
Compared to the overall equity markets, risk-adjusted returns on investments in Jumia Technologies AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal forward indicators, Jumia Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.
Emera Incorporated 

Risk-Adjusted Performance

0 of 100

 
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Very Weak
Over the last 90 days Emera Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Emera Incorporated is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Jumia Technologies and Emera Incorporated Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jumia Technologies and Emera Incorporated

The main advantage of trading using opposite Jumia Technologies and Emera Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jumia Technologies position performs unexpectedly, Emera Incorporated 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 Emera Incorporated will offset losses from the drop in Emera Incorporated's long position.
The idea behind Jumia Technologies AG and Emera Incorporated 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.

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