Correlation Between Jacquet Metal and PUMA SE

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

Diversification Opportunities for Jacquet Metal and PUMA SE

-0.51

Correlation Coefficient

Jacquet Metal  PUMA SE

Excellent diversification

The 3 months correlation between Jacquet and PUMA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and PUMA SE UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA SE UNSPADR 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 PUMA SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA SE UNSPADR has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and PUMA SE go up and down completely randomly.

Pair Corralation between Jacquet Metal and PUMA SE

Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.5 times more return on investment than PUMA SE. However, Jacquet Metal Service is 1.98 times less risky than PUMA SE. It trades about 0.14 of its potential returns per unit of risk. PUMA SE UNSPADR is currently generating about -0.16 per unit of risk. If you would invest  1,690  in Jacquet Metal Service on December 26, 2024 and sell it today you would earn a total of  365.00  from holding Jacquet Metal Service or generate 21.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jacquet Metal Service  vs.  PUMA SE UNSPADR

Jacquet Metal Service

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jacquet Metal reported solid returns over the last few months and may actually be approaching a breakup point.

PUMA SE UNSPADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days PUMA SE UNSPADR 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 primary indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Jacquet Metal and PUMA SE

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

The idea behind Jacquet Metal Service and PUMA SE UNSPADR 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.