Correlation Between Jacquet Metal and Credit Agricole

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

Diversification Opportunities for Jacquet Metal and Credit Agricole

-0.13

Correlation Coefficient

Jacquet Metal  Credit Agricole

Good diversification

The 3 months correlation between Jacquet and Credit is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Credit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole 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 Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Credit Agricole go up and down completely randomly.

Pair Corralation between Jacquet Metal and Credit Agricole

Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 1.3 times more return on investment than Credit Agricole. However, Jacquet Metal is 1.3 times more volatile than Credit Agricole SA. It trades about 0.16 of its potential returns per unit of risk. Credit Agricole SA is currently generating about -0.1 per unit of risk. If you would invest  1,420  in Jacquet Metal Service on September 12, 2024 and sell it today you would earn a total of  240.00  from holding Jacquet Metal Service or generate 16.9% 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.  Credit Agricole SA

Jacquet Metal Service

Risk-Adjusted Performance

12 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Jacquet Metal sustained solid returns over the last few months and may actually be approaching a breakup point.

Credit Agricole SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Credit Agricole SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Jacquet Metal and Credit Agricole

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

The idea behind Jacquet Metal Service and Credit Agricole 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.