Correlation Between Invibes Advertising and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Invibes Advertising 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 Invibes Advertising and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invibes Advertising NV and Jacquet Metal Service, you can compare the effects of market volatilities on Invibes Advertising 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 Invibes Advertising with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invibes Advertising and Jacquet Metal.
Diversification Opportunities for Invibes Advertising and Jacquet Metal
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invibes and Jacquet is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Invibes Advertising NV 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 Invibes Advertising 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 Invibes Advertising NV 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 Invibes Advertising i.e., Invibes Advertising and Jacquet Metal go up and down completely randomly.
Pair Corralation between Invibes Advertising and Jacquet Metal
Assuming the 90 days trading horizon Invibes Advertising NV is expected to generate 2.99 times more return on investment than Jacquet Metal. However, Invibes Advertising is 2.99 times more volatile than Jacquet Metal Service. It trades about 0.03 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.3 per unit of risk. If you would invest 198.00 in Invibes Advertising NV on October 23, 2024 and sell it today you would earn a total of 1.00 from holding Invibes Advertising NV or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invibes Advertising NV vs. Jacquet Metal Service
Performance |
| Timeline |
| Invibes Advertising |
| Jacquet Metal Service |
Invibes Advertising and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invibes Advertising and Jacquet Metal
The main advantage of trading using opposite Invibes Advertising and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invibes Advertising 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.| Invibes Advertising vs. Streamwide | Invibes Advertising vs. Claranova SE | Invibes Advertising vs. SA Catana Group | Invibes Advertising vs. Wallix Group SA |
| Jacquet Metal vs. Derichebourg | Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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