Correlation Between Haulotte Group and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Haulotte Group and Jacquet Metal 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 Haulotte Group and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haulotte Group SA and Jacquet Metal Service, you can compare the effects of market volatilities on Haulotte Group and Jacquet Metal 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 Haulotte Group with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haulotte Group and Jacquet Metal.
Diversification Opportunities for Haulotte Group and Jacquet Metal
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Haulotte and Jacquet is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Haulotte Group SA and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service and Haulotte Group 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 Haulotte Group SA are associated (or correlated) with Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Haulotte Group i.e., Haulotte Group and Jacquet Metal go up and down completely randomly.
Pair Corralation between Haulotte Group and Jacquet Metal
Assuming the 90 days trading horizon Haulotte Group SA is expected to under-perform the Jacquet Metal. In addition to that, Haulotte Group is 1.65 times more volatile than Jacquet Metal Service. It trades about -0.01 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.11 per unit of volatility. If you would invest 1,448 in Jacquet Metal Service on September 6, 2024 and sell it today you would earn a total of 152.00 from holding Jacquet Metal Service or generate 10.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Haulotte Group SA vs. Jacquet Metal Service
Performance |
Timeline |
Haulotte Group SA |
Jacquet Metal Service |
Haulotte Group and Jacquet Metal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Haulotte Group and Jacquet Metal
The main advantage of trading using opposite Haulotte Group and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haulotte Group position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.Haulotte Group vs. Manitou BF SA | Haulotte Group vs. NRJ Group | Haulotte Group vs. Etablissements Maurel et | Haulotte Group vs. Trigano SA |
Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs SA | Jacquet Metal vs. Eramet 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Transaction History View history of all your transactions and understand their impact on performance | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |