Correlation Between Jacquet Metal and Hotelim Socit

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

Diversification Opportunities for Jacquet Metal and Hotelim Socit

0.61

Correlation Coefficient

Jacquet Metal  Hotelim Socit

Poor diversification

The 3 months correlation between Jacquet and Hotelim is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Hotelim Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotelim Socit Anonyme 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 Hotelim Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotelim Socit Anonyme has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Hotelim Socit go up and down completely randomly.

Pair Corralation between Jacquet Metal and Hotelim Socit

Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Hotelim Socit. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.93 times less risky than Hotelim Socit. The stock trades about -0.02 of its potential returns per unit of risk. The Hotelim Socit Anonyme is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,320  in Hotelim Socit Anonyme on September 5, 2024 and sell it today you would earn a total of  620.00  from holding Hotelim Socit Anonyme or generate 18.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.67%
Values	Daily Returns

Jacquet Metal Service  vs.  Hotelim Socit Anonyme

Jacquet Metal Service

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 6 (%) 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.

Hotelim Socit Anonyme

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hotelim Socit Anonyme are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Hotelim Socit reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jacquet Metal and Hotelim Socit

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

The idea behind Jacquet Metal Service and Hotelim Socit Anonyme 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.