Correlation Between Shell PLC and Jde Peets

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

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

Diversification Opportunities for Shell PLC and Jde Peets

0.5

Correlation Coefficient

Shell PLC  Jde Peets

Very weak diversification

The 3 months correlation between Shell and Jde is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shell 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 Shell PLC 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 Shell 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 Shell PLC i.e., Shell PLC and Jde Peets go up and down completely randomly.

Pair Corralation between Shell PLC and Jde Peets

Assuming the 90 days trading horizon Shell PLC is expected to generate 2.56 times less return on investment than Jde Peets. But when comparing it to its historical volatility, Shell PLC is 1.57 times less risky than Jde Peets. It trades about 0.09 of its potential returns per unit of risk. Jde Peets Nv is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,210  in Jde Peets Nv on May 9, 2025 and sell it today you would earn a total of  384.00  from holding Jde Peets Nv or generate 17.38% return on investment over 90 days.

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

Shell PLC  vs.  Jde Peets Nv

Shell PLC

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Shell PLC are ranked lower than 7 (%) 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 September 2025.

Jde Peets Nv

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jde Peets Nv are ranked lower than 11 (%) 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 Shell PLC and Jde Peets

The main advantage of trading using opposite Shell PLC and Jde Peets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shell PLC 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 Shell 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.

Check out your portfolio center.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.