Correlation Between Jde Peets and Shell PLC

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

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

Diversification Opportunities for Jde Peets and Shell PLC

0.67

Correlation Coefficient

Jde Peets  Shell PLC

Poor diversification

The 3 months correlation between Jde and Shell is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jde Peets Nv and Shell PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shell PLC and Jde Peets 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 Jde Peets Nv are associated (or correlated) with Shell PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shell PLC has no effect on the direction of Jde Peets i.e., Jde Peets and Shell PLC go up and down completely randomly.

Pair Corralation between Jde Peets and Shell PLC

Assuming the 90 days trading horizon Jde Peets Nv is expected to generate 0.93 times more return on investment than Shell PLC. However, Jde Peets Nv is 1.08 times less risky than Shell PLC. It trades about 0.21 of its potential returns per unit of risk. Shell PLC is currently generating about 0.11 per unit of risk. If you would invest  2,092  in Jde Peets Nv on April 29, 2025 and sell it today you would earn a total of  306.00  from holding Jde Peets Nv or generate 14.63% return on investment over 90 days.

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

Jde Peets Nv  vs.  Shell PLC

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 16 (%) 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.

Shell PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shell PLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Shell PLC may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Jde Peets and Shell PLC

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

The idea behind Jde Peets Nv and Shell PLC 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.