Correlation Between WFD Unibail and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both WFD Unibail 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 WFD Unibail and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WFD Unibail Rodamco and Jacquet Metal Service, you can compare the effects of market volatilities on WFD Unibail 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 WFD Unibail with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of WFD Unibail and Jacquet Metal.
Diversification Opportunities for WFD Unibail and Jacquet Metal
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WFD and Jacquet is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding WFD Unibail Rodamco 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 WFD Unibail 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 WFD Unibail Rodamco 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 WFD Unibail i.e., WFD Unibail and Jacquet Metal go up and down completely randomly.
Pair Corralation between WFD Unibail and Jacquet Metal
Assuming the 90 days trading horizon WFD Unibail Rodamco is expected to under-perform the Jacquet Metal. But the stock apears to be less risky and, when comparing its historical volatility, WFD Unibail Rodamco is 1.67 times less risky than Jacquet Metal. The stock trades about -0.09 of its potential returns per unit of risk. The Jacquet Metal Service is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,644 in Jacquet Metal Service on October 9, 2024 and sell it today you would earn a total of 82.00 from holding Jacquet Metal Service or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
WFD Unibail Rodamco vs. Jacquet Metal Service
Performance |
| Timeline |
| WFD Unibail Rodamco |
| Jacquet Metal Service |
WFD Unibail and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WFD Unibail and Jacquet Metal
The main advantage of trading using opposite WFD Unibail and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WFD Unibail 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.| WFD Unibail vs. Live Nation Entertainment | WFD Unibail vs. Entravision Communications | WFD Unibail vs. SOCKET MOBILE NEW | WFD Unibail vs. PROSIEBENSAT1 MEDIADR4 |
| Jacquet Metal vs. Align Technology | Jacquet Metal vs. Clean Energy Fuels | Jacquet Metal vs. UPDATE SOFTWARE | Jacquet Metal vs. Easy Software AG |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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