Correlation Between Theon International and Jde Peets

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

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

Diversification Opportunities for Theon International and Jde Peets

0.79

Correlation Coefficient

Theon International  Jde Peets

Poor diversification

The 3 months correlation between Theon and Jde is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Theon International Plc 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 Theon International 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 Theon International Plc 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 Theon International i.e., Theon International and Jde Peets go up and down completely randomly.

Pair Corralation between Theon International and Jde Peets

Assuming the 90 days trading horizon Theon International Plc is expected to generate 3.29 times more return on investment than Jde Peets. However, Theon International is 3.29 times more volatile than Jde Peets Nv. It trades about 0.08 of its potential returns per unit of risk. Jde Peets Nv is currently generating about 0.24 per unit of risk. If you would invest  2,496  in Theon International Plc on April 24, 2025 and sell it today you would earn a total of  359.00  from holding Theon International Plc or generate 14.38% return on investment over 90 days.

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

Theon International Plc  vs.  Jde Peets Nv

Theon International Plc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Theon International Plc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Theon International sustained 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 18 (%) 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 Theon International and Jde Peets

The main advantage of trading using opposite Theon International and Jde Peets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Theon International 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 Theon International Plc 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.