Correlation Between Jacquet Metal and Neinor Homes
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Neinor Homes 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 Jacquet Metal and Neinor Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and Neinor Homes SA, you can compare the effects of market volatilities on Jacquet Metal and Neinor Homes 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 Jacquet Metal with a short position of Neinor Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Neinor Homes.
Diversification Opportunities for Jacquet Metal and Neinor Homes
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and Neinor is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Neinor Homes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neinor Homes SA and Jacquet Metal 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 Jacquet Metal Service are associated (or correlated) with Neinor Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neinor Homes SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Neinor Homes go up and down completely randomly.
Pair Corralation between Jacquet Metal and Neinor Homes
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Neinor Homes. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.04 times less risky than Neinor Homes. The stock trades about -0.01 of its potential returns per unit of risk. The Neinor Homes SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 888.00 in Neinor Homes SA on November 5, 2024 and sell it today you would earn a total of 758.00 from holding Neinor Homes SA or generate 85.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Neinor Homes SA
Performance |
| Timeline |
| Jacquet Metal Service |
| Neinor Homes SA |
Jacquet Metal and Neinor Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Neinor Homes
The main advantage of trading using opposite Jacquet Metal and Neinor Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Neinor Homes 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 Neinor Homes will offset losses from the drop in Neinor Homes' long position.| Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. Steel Dynamics | Jacquet Metal vs. Nippon Steel | Jacquet Metal vs. NIPPON STEEL SPADR |
| Neinor Homes vs. DALATA HOTEL | Neinor Homes vs. InterContinental Hotels Group | Neinor Homes vs. NH HOTEL GROUP | Neinor Homes vs. CSSC Offshore Marine |
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.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |