Correlation Between Jacquet Metal and VIB Vermgen
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and VIB Vermgen 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 VIB Vermgen 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 VIB Vermgen AG, you can compare the effects of market volatilities on Jacquet Metal and VIB Vermgen 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 VIB Vermgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and VIB Vermgen.
Diversification Opportunities for Jacquet Metal and VIB Vermgen
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and VIB is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and VIB Vermgen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIB Vermgen 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 VIB Vermgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIB Vermgen AG has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and VIB Vermgen go up and down completely randomly.
Pair Corralation between Jacquet Metal and VIB Vermgen
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 1.71 times more return on investment than VIB Vermgen. However, Jacquet Metal is 1.71 times more volatile than VIB Vermgen AG. It trades about 0.12 of its potential returns per unit of risk. VIB Vermgen AG is currently generating about -0.03 per unit of risk. If you would invest 1,720 in Jacquet Metal Service on December 29, 2024 and sell it today you would earn a total of 335.00 from holding Jacquet Metal Service or generate 19.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jacquet Metal Service vs. VIB Vermgen AG
Performance |
Timeline |
Jacquet Metal Service |
VIB Vermgen AG |
Jacquet Metal and VIB Vermgen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jacquet Metal and VIB Vermgen
The main advantage of trading using opposite Jacquet Metal and VIB Vermgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, VIB Vermgen 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 VIB Vermgen will offset losses from the drop in VIB Vermgen's long position.Jacquet Metal vs. ADRIATIC METALS LS 013355 | Jacquet Metal vs. Suntory Beverage Food | Jacquet Metal vs. Transport International Holdings | Jacquet Metal vs. Yuexiu Transport Infrastructure |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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