Correlation Between COPLAND ROAD and Jerónimo Martins

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

By analyzing existing cross correlation between COPLAND ROAD CAPITAL and Jernimo Martins SGPS, you can compare the effects of market volatilities on COPLAND ROAD and Jerónimo 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 COPLAND ROAD with a short position of Jerónimo Martins. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPLAND ROAD and Jerónimo Martins.

Diversification Opportunities for COPLAND ROAD and Jerónimo Martins

0.0

Correlation Coefficient

COPLAND ROAD  Jerónimo Martins

Pay attention - limited upside

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

Pair Corralation between COPLAND ROAD and Jerónimo Martins

If you would invest  4,726  in COPLAND ROAD CAPITAL on April 24, 2025 and sell it today you would earn a total of  100.00  from holding COPLAND ROAD CAPITAL or generate 2.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

COPLAND ROAD CAPITAL  vs.  Jernimo Martins SGPS

COPLAND ROAD CAPITAL

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in COPLAND ROAD CAPITAL are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, COPLAND ROAD is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Jernimo Martins SGPS

Risk-Adjusted Performance

Very Weak

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

Pair Trading with COPLAND ROAD and Jerónimo Martins

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

The idea behind COPLAND ROAD CAPITAL and Jernimo Martins SGPS 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.