Correlation Between Jacquet Metal and Courtois

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

Diversification Opportunities for Jacquet Metal and Courtois

0.0

Correlation Coefficient

Jacquet Metal  Courtois

Pay attention - limited upside

The 3 months correlation between Jacquet and Courtois is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Courtois SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Courtois 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 Courtois. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Courtois SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Courtois go up and down completely randomly.

Pair Corralation between Jacquet Metal and Courtois

Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Courtois. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.17 times less risky than Courtois. The stock trades about -0.06 of its potential returns per unit of risk. The Courtois SA is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  13,000  in Courtois SA on October 25, 2024 and sell it today you would lose (900.00) from holding Courtois SA or give up 6.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Jacquet Metal Service  vs.  Courtois SA

Jacquet Metal Service

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jacquet Metal Service 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.

Courtois SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Courtois SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Courtois is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jacquet Metal and Courtois

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

The idea behind Jacquet Metal Service and Courtois 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.