Correlation Between Autohellas and Jumbo SA

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

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

Diversification Opportunities for Autohellas and Jumbo SA

-0.21

Correlation Coefficient

Autohellas  Jumbo SA

Very good diversification

The 3 months correlation between Autohellas and Jumbo is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Autohellas SA and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA and Autohellas 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 Autohellas SA are associated (or correlated) with Jumbo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jumbo SA has no effect on the direction of Autohellas i.e., Autohellas and Jumbo SA go up and down completely randomly.

Pair Corralation between Autohellas and Jumbo SA

Assuming the 90 days trading horizon Autohellas SA is expected to under-perform the Jumbo SA. In addition to that, Autohellas is 1.08 times more volatile than Jumbo SA. It trades about -0.04 of its total potential returns per unit of risk. Jumbo SA is currently generating about 0.12 per unit of volatility. If you would invest  2,732  in Jumbo SA on April 23, 2025 and sell it today you would earn a total of  302.00  from holding Jumbo SA or generate 11.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Autohellas SA  vs.  Jumbo SA

Autohellas SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Autohellas SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Autohellas is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jumbo SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jumbo SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Jumbo SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Autohellas and Jumbo SA

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

The idea behind Autohellas SA and Jumbo SA 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.