Correlation Between Exor NV and Jde Peets

Can any of the company-specific risk be diversified away by investing in both Exor NV and Jde Peets 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 Exor NV and Jde Peets into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Exor NV and Jde Peets Nv, you can compare the effects of market volatilities on Exor NV and Jde Peets 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 Exor NV with a short position of Jde Peets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exor NV and Jde Peets.

Diversification Opportunities for Exor NV and Jde Peets

0.61

Correlation Coefficient

Exor NV  Jde Peets

Poor diversification

The 3 months correlation between Exor and Jde is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Exor NV and Jde Peets Nv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jde Peets Nv and Exor NV 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 Exor NV are associated (or correlated) with Jde Peets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jde Peets Nv has no effect on the direction of Exor NV i.e., Exor NV and Jde Peets go up and down completely randomly.

Pair Corralation between Exor NV and Jde Peets

Assuming the 90 days trading horizon Exor NV is expected to generate 1.21 times less return on investment than Jde Peets. In addition to that, Exor NV is 1.23 times more volatile than Jde Peets Nv. It trades about 0.17 of its total potential returns per unit of risk. Jde Peets Nv is currently generating about 0.25 per unit of volatility. If you would invest  2,055  in Jde Peets Nv on April 22, 2025 and sell it today you would earn a total of  359.00  from holding Jde Peets Nv or generate 17.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Exor NV  vs.  Jde Peets Nv

Exor NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exor NV are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Exor NV unveiled solid returns over the last few months and may actually be approaching a breakup point.

Jde Peets Nv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jde Peets Nv are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Jde Peets unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exor NV and Jde Peets

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

The idea behind Exor NV and Jde Peets 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.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.