Correlation Between Jacquet Metal and CeoTronics
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and CeoTronics 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 CeoTronics 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 CeoTronics AG, you can compare the effects of market volatilities on Jacquet Metal and CeoTronics 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 CeoTronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and CeoTronics.
Diversification Opportunities for Jacquet Metal and CeoTronics
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and CeoTronics is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and CeoTronics AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CeoTronics AG 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 CeoTronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CeoTronics AG has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and CeoTronics go up and down completely randomly.
Pair Corralation between Jacquet Metal and CeoTronics
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the CeoTronics. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.76 times less risky than CeoTronics. The stock trades about -0.03 of its potential returns per unit of risk. The CeoTronics AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 421.00 in CeoTronics AG on September 25, 2024 and sell it today you would earn a total of 169.00 from holding CeoTronics AG or generate 40.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jacquet Metal Service vs. CeoTronics AG
Performance |
Timeline |
Jacquet Metal Service |
CeoTronics AG |
Jacquet Metal and CeoTronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jacquet Metal and CeoTronics
The main advantage of trading using opposite Jacquet Metal and CeoTronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, CeoTronics 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 CeoTronics will offset losses from the drop in CeoTronics' long position.Jacquet Metal vs. Nucor | Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Steel Dynamics |
CeoTronics vs. Sims Metal Management | CeoTronics vs. Tower One Wireless | CeoTronics vs. Jacquet Metal Service | CeoTronics vs. GALENA MINING LTD |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |