Correlation Between Jacquet Metal and Jost Werke
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Jost Werke 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 Jost Werke 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 Jost Werke AG, you can compare the effects of market volatilities on Jacquet Metal and Jost Werke 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 Jost Werke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Jost Werke.
Diversification Opportunities for Jacquet Metal and Jost Werke
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacquet and Jost is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Jost Werke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jost Werke AG 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 Jost Werke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jost Werke AG has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Jost Werke go up and down completely randomly.
Pair Corralation between Jacquet Metal and Jost Werke
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Jost Werke. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.0 times less risky than Jost Werke. The stock trades about -0.04 of its potential returns per unit of risk. The Jost Werke AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,136 in Jost Werke AG on September 3, 2024 and sell it today you would earn a total of 27.00 from holding Jost Werke AG or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Jacquet Metal Service vs. Jost Werke AG
Performance |
| Timeline |
| Jacquet Metal Service |
| Jost Werke AG |
Jacquet Metal and Jost Werke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Jost Werke
The main advantage of trading using opposite Jacquet Metal and Jost Werke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Jost Werke 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 Jost Werke will offset losses from the drop in Jost Werke's long position.| Jacquet Metal vs. Liberty Media Corp | Jacquet Metal vs. International Biotechnology Trust | Jacquet Metal vs. Solstad Offshore ASA | Jacquet Metal vs. Catena Media PLC |
| Jost Werke vs. Catalyst Media Group | Jost Werke vs. CATLIN GROUP | Jost Werke vs. RTW Venture Fund | Jost Werke vs. Secure Property Development |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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