Correlation Between Carlsberg A/S and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Carlsberg A/S 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 Carlsberg A/S and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and Jacquet Metal Service, you can compare the effects of market volatilities on Carlsberg A/S 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 Carlsberg A/S with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg A/S and Jacquet Metal.
Diversification Opportunities for Carlsberg A/S and Jacquet Metal
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlsberg and Jacquet is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS 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 Carlsberg A/S 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 Carlsberg AS 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 Carlsberg A/S i.e., Carlsberg A/S and Jacquet Metal go up and down completely randomly.
Pair Corralation between Carlsberg A/S and Jacquet Metal
Assuming the 90 days trading horizon Carlsberg AS is expected to under-perform the Jacquet Metal. In addition to that, Carlsberg A/S is 1.52 times more volatile than Jacquet Metal Service. It trades about -0.16 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.1 per unit of volatility. If you would invest 1,602 in Jacquet Metal Service on September 1, 2024 and sell it today you would lose (48.00) from holding Jacquet Metal Service or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Carlsberg AS vs. Jacquet Metal Service
Performance |
| Timeline |
| Carlsberg A/S |
| Jacquet Metal Service |
Carlsberg A/S and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg A/S and Jacquet Metal
The main advantage of trading using opposite Carlsberg A/S and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg A/S 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.| Carlsberg A/S vs. Jacquet Metal Service | Carlsberg A/S vs. RCM TECHNOLOGIES | Carlsberg A/S vs. AAC TECHNOLOGHLDGADR | Carlsberg A/S vs. POWER METALS |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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