Correlation Between Avenir Telecom and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Avenir Telecom 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 Avenir Telecom and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avenir Telecom SA and Jacquet Metal Service, you can compare the effects of market volatilities on Avenir Telecom 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 Avenir Telecom with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avenir Telecom and Jacquet Metal.
Diversification Opportunities for Avenir Telecom and Jacquet Metal
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Avenir and Jacquet is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Avenir Telecom 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 Avenir Telecom 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 Avenir Telecom 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 Avenir Telecom i.e., Avenir Telecom and Jacquet Metal go up and down completely randomly.
Pair Corralation between Avenir Telecom and Jacquet Metal
Assuming the 90 days trading horizon Avenir Telecom SA is expected to generate 4.03 times more return on investment than Jacquet Metal. However, Avenir Telecom is 4.03 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 0.01 per unit of risk. If you would invest 7.50 in Avenir Telecom SA on September 26, 2024 and sell it today you would lose (0.98) from holding Avenir Telecom SA or give up 13.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avenir Telecom SA vs. Jacquet Metal Service
Performance |
| Timeline |
| Avenir Telecom SA |
| Jacquet Metal Service |
Avenir Telecom and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avenir Telecom and Jacquet Metal
The main advantage of trading using opposite Avenir Telecom and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avenir Telecom 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.| Avenir Telecom vs. Acheter Louer | Avenir Telecom vs. Europlasma SA | Avenir Telecom vs. DBT SA | Avenir Telecom vs. Solocal Group SA |
| Jacquet Metal vs. Thermador Groupe SA | Jacquet Metal vs. Rubis SCA | Jacquet Metal vs. Vicat SA | Jacquet Metal vs. Trigano 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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