Correlation Between Jacquet Metal and Delfingen

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

Diversification Opportunities for Jacquet Metal and Delfingen

-0.15

Correlation Coefficient

Jacquet Metal  Delfingen

Good diversification

The 3 months correlation between Jacquet and Delfingen is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Delfingen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delfingen 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 Delfingen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delfingen has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Delfingen go up and down completely randomly.

Pair Corralation between Jacquet Metal and Delfingen

Assuming the 90 days trading horizon Jacquet Metal is expected to generate 1.97 times less return on investment than Delfingen. But when comparing it to its historical volatility, Jacquet Metal Service is 2.33 times less risky than Delfingen. It trades about 0.36 of its potential returns per unit of risk. Delfingen is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  1,155  in Delfingen on September 30, 2024 and sell it today you would earn a total of  210.00  from holding Delfingen or generate 18.18% 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.  Delfingen

Jacquet Metal Service

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Jacquet Metal may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Delfingen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Delfingen has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Jacquet Metal and Delfingen

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

The idea behind Jacquet Metal Service and Delfingen 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.