Correlation Between Jacquet Metal and Bilendi
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Bilendi 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 Bilendi 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 Bilendi, you can compare the effects of market volatilities on Jacquet Metal and Bilendi 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 Bilendi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Bilendi.
Diversification Opportunities for Jacquet Metal and Bilendi
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jacquet and Bilendi is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Bilendi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilendi 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 Bilendi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilendi has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Bilendi go up and down completely randomly.
Pair Corralation between Jacquet Metal and Bilendi
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.57 times more return on investment than Bilendi. However, Jacquet Metal Service is 1.74 times less risky than Bilendi. It trades about 0.16 of its potential returns per unit of risk. Bilendi is currently generating about -0.05 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 Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jacquet Metal Service vs. Bilendi
Performance |
Timeline |
Jacquet Metal Service |
Bilendi |
Jacquet Metal and Bilendi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jacquet Metal and Bilendi
The main advantage of trading using opposite Jacquet Metal and Bilendi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Bilendi 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 Bilendi will offset losses from the drop in Bilendi's long position.Jacquet Metal vs. Thermador Groupe SA | Jacquet Metal vs. Samse SA | Jacquet Metal vs. Rubis SCA | Jacquet Metal vs. Trigano SA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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