Correlation Between Broadcom and JERONIMO MARTINS

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

By analyzing existing cross correlation between Broadcom and JERONIMO MARTINS UNADR2, you can compare the effects of market volatilities on Broadcom and JERONIMO 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 Broadcom with a short position of JERONIMO MARTINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadcom and JERONIMO MARTINS.

Diversification Opportunities for Broadcom and JERONIMO MARTINS

-0.17

Correlation Coefficient

Broadcom  JERONIMO MARTINS

Good diversification

The 3 months correlation between Broadcom and JERONIMO is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Broadcom and JERONIMO MARTINS UNADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JERONIMO MARTINS UNADR2 and Broadcom 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 Broadcom are associated (or correlated) with JERONIMO MARTINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JERONIMO MARTINS UNADR2 has no effect on the direction of Broadcom i.e., Broadcom and JERONIMO MARTINS go up and down completely randomly.

Pair Corralation between Broadcom and JERONIMO MARTINS

Assuming the 90 days trading horizon Broadcom is expected to generate 2.51 times more return on investment than JERONIMO MARTINS. However, Broadcom is 2.51 times more volatile than JERONIMO MARTINS UNADR2. It trades about 0.11 of its potential returns per unit of risk. JERONIMO MARTINS UNADR2 is currently generating about -0.12 per unit of risk. If you would invest  25,047  in Broadcom on July 26, 2025 and sell it today you would earn a total of  4,618  from holding Broadcom or generate 18.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Broadcom  vs.  JERONIMO MARTINS UNADR2

Broadcom

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Broadcom are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental indicators, Broadcom sustained solid returns over the last few months and may actually be approaching a breakup point.

JERONIMO MARTINS UNADR2

Risk-Adjusted Performance

Weakest

Over the last 90 days JERONIMO MARTINS UNADR2 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Broadcom and JERONIMO MARTINS

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

The idea behind Broadcom and JERONIMO MARTINS UNADR2 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.