Correlation Between Jacquet Metal and Air Liquide

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Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Air Liquide 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 Jacquet Metal and Air Liquide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and Air Liquide SA, you can compare the effects of market volatilities on Jacquet Metal and Air Liquide 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 Jacquet Metal with a short position of Air Liquide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Air Liquide.

Diversification Opportunities for Jacquet Metal and Air Liquide

-0.18
  Correlation Coefficient

Good diversification

The 3 months correlation between Jacquet and Air is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Air Liquide SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Liquide SA and Jacquet Metal 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 Jacquet Metal Service are associated (or correlated) with Air Liquide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Liquide SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Air Liquide go up and down completely randomly.

Pair Corralation between Jacquet Metal and Air Liquide

Assuming the 90 days horizon Jacquet Metal Service is expected to generate 2.67 times more return on investment than Air Liquide. However, Jacquet Metal is 2.67 times more volatile than Air Liquide SA. It trades about 0.19 of its potential returns per unit of risk. Air Liquide SA is currently generating about -0.43 per unit of risk. If you would invest  1,644  in Jacquet Metal Service on October 8, 2024 and sell it today you would earn a total of  82.00  from holding Jacquet Metal Service or generate 4.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Jacquet Metal Service  vs.  Air Liquide SA

 Performance 
       Timeline  
Jacquet Metal Service 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jacquet Metal may actually be approaching a critical reversion point that can send shares even higher in February 2025.
Air Liquide SA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Air Liquide SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Jacquet Metal and Air Liquide Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jacquet Metal and Air Liquide

The main advantage of trading using opposite Jacquet Metal and Air Liquide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Air Liquide 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 Air Liquide will offset losses from the drop in Air Liquide's long position.
The idea behind Jacquet Metal Service and Air Liquide 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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