Correlation Between Cadeler AS and Jacobs Solutions
Can any of the company-specific risk be diversified away by investing in both Cadeler AS and Jacobs Solutions 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 Cadeler AS and Jacobs Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cadeler AS and Jacobs Solutions, you can compare the effects of market volatilities on Cadeler AS and Jacobs Solutions 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 Cadeler AS with a short position of Jacobs Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadeler AS and Jacobs Solutions.
Diversification Opportunities for Cadeler AS and Jacobs Solutions
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cadeler and Jacobs is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cadeler AS and Jacobs Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacobs Solutions and Cadeler AS 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 Cadeler AS are associated (or correlated) with Jacobs Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacobs Solutions has no effect on the direction of Cadeler AS i.e., Cadeler AS and Jacobs Solutions go up and down completely randomly.
Pair Corralation between Cadeler AS and Jacobs Solutions
Given the investment horizon of 90 days Cadeler AS is expected to under-perform the Jacobs Solutions. In addition to that, Cadeler AS is 1.08 times more volatile than Jacobs Solutions. It trades about -0.1 of its total potential returns per unit of risk. Jacobs Solutions is currently generating about 0.14 per unit of volatility. If you would invest 11,874 in Jacobs Solutions on September 12, 2024 and sell it today you would earn a total of 1,638 from holding Jacobs Solutions or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cadeler AS vs. Jacobs Solutions
Performance |
| Timeline |
| Cadeler AS |
| Jacobs Solutions |
Cadeler AS and Jacobs Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cadeler AS and Jacobs Solutions
The main advantage of trading using opposite Cadeler AS and Jacobs Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cadeler AS position performs unexpectedly, Jacobs Solutions 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 Jacobs Solutions will offset losses from the drop in Jacobs Solutions' long position.| Cadeler AS vs. BCE Inc | Cadeler AS vs. Western Digital | Cadeler AS vs. NRG Energy | Cadeler AS vs. Empresa Distribuidora y |
| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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