Correlation Between Jeronimo Martins and Conduril Engenharia
Can any of the company-specific risk be diversified away by investing in both Jeronimo Martins and Conduril Engenharia 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 Jeronimo Martins and Conduril Engenharia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeronimo Martins SGPS and Conduril Engenharia, you can compare the effects of market volatilities on Jeronimo Martins and Conduril Engenharia 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 Jeronimo Martins with a short position of Conduril Engenharia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeronimo Martins and Conduril Engenharia.
Diversification Opportunities for Jeronimo Martins and Conduril Engenharia
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jeronimo and Conduril is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jeronimo Martins SGPS and Conduril Engenharia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conduril Engenharia and Jeronimo Martins 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 Jeronimo Martins SGPS are associated (or correlated) with Conduril Engenharia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conduril Engenharia has no effect on the direction of Jeronimo Martins i.e., Jeronimo Martins and Conduril Engenharia go up and down completely randomly.
Pair Corralation between Jeronimo Martins and Conduril Engenharia
Assuming the 90 days trading horizon Jeronimo Martins SGPS is expected to generate 4.37 times more return on investment than Conduril Engenharia. However, Jeronimo Martins is 4.37 times more volatile than Conduril Engenharia. It trades about -0.01 of its potential returns per unit of risk. Conduril Engenharia is currently generating about -0.23 per unit of risk. If you would invest 1,853 in Jeronimo Martins SGPS on January 24, 2024 and sell it today you would lose (8.00) from holding Jeronimo Martins SGPS or give up 0.43% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.0% |
Values | Daily Returns |
Jeronimo Martins SGPS vs. Conduril Engenharia
Performance |
Timeline |
Jeronimo Martins SGPS |
Conduril Engenharia |
Jeronimo Martins and Conduril Engenharia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jeronimo Martins and Conduril Engenharia
The main advantage of trading using opposite Jeronimo Martins and Conduril Engenharia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeronimo Martins position performs unexpectedly, Conduril Engenharia 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 Conduril Engenharia will offset losses from the drop in Conduril Engenharia's long position.Jeronimo Martins vs. Sonae SGPS SA | Jeronimo Martins vs. Galp Energia SGPS | Jeronimo Martins vs. EDP Energias | Jeronimo Martins vs. Altri SGPS SA |
Conduril Engenharia vs. Sonae SGPS SA | Conduril Engenharia vs. Altri SGPS SA | Conduril Engenharia vs. Banco Comercial Portugues | Conduril Engenharia vs. Semapa |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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