Correlation Between Jacquet Metal and Hapag Lloyd

Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Hapag Lloyd 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 Hapag Lloyd 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 Hapag Lloyd AG, you can compare the effects of market volatilities on Jacquet Metal and Hapag Lloyd 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 Hapag Lloyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Hapag Lloyd.

Diversification Opportunities for Jacquet Metal and Hapag Lloyd

0.02

Correlation Coefficient

Jacquet Metal  Hapag Lloyd

Significant diversification

The 3 months correlation between Jacquet and Hapag is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Hapag Lloyd AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hapag Lloyd 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 Hapag Lloyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hapag Lloyd AG has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Hapag Lloyd go up and down completely randomly.

Pair Corralation between Jacquet Metal and Hapag Lloyd

Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.78 times more return on investment than Hapag Lloyd. However, Jacquet Metal Service is 1.29 times less risky than Hapag Lloyd. It trades about -0.31 of its potential returns per unit of risk. Hapag Lloyd AG is currently generating about -0.29 per unit of risk. If you would invest  1,690  in Jacquet Metal Service on October 25, 2024 and sell it today you would lose (188.00) from holding Jacquet Metal Service or give up 11.12% of portfolio value over 90 days.

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

Jacquet Metal Service  vs.  Hapag Lloyd AG

Jacquet Metal Service

Risk-Adjusted Performance

0 of 100

Very Weak

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

Hapag Lloyd AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hapag Lloyd AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Jacquet Metal and Hapag Lloyd

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

The idea behind Jacquet Metal Service and Hapag Lloyd AG 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.