Correlation Between Jacquet Metal and GAMES OPERATORS
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and GAMES OPERATORS 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 GAMES OPERATORS 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 GAMES OPERATORS SA, you can compare the effects of market volatilities on Jacquet Metal and GAMES OPERATORS 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 GAMES OPERATORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and GAMES OPERATORS.
Diversification Opportunities for Jacquet Metal and GAMES OPERATORS
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and GAMES is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and GAMES OPERATORS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMES OPERATORS 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 GAMES OPERATORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMES OPERATORS SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and GAMES OPERATORS go up and down completely randomly.
Pair Corralation between Jacquet Metal and GAMES OPERATORS
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the GAMES OPERATORS. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.1 times less risky than GAMES OPERATORS. The stock trades about -0.32 of its potential returns per unit of risk. The GAMES OPERATORS SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 315.00 in GAMES OPERATORS SA on October 26, 2024 and sell it today you would earn a total of 4.00 from holding GAMES OPERATORS SA or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. GAMES OPERATORS SA
Performance |
| Timeline |
| Jacquet Metal Service |
| GAMES OPERATORS SA |
Jacquet Metal and GAMES OPERATORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and GAMES OPERATORS
The main advantage of trading using opposite Jacquet Metal and GAMES OPERATORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, GAMES OPERATORS 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 GAMES OPERATORS will offset losses from the drop in GAMES OPERATORS's long position.| Jacquet Metal vs. INFORMATION SVC GRP | Jacquet Metal vs. CN DATANG C | Jacquet Metal vs. NTT DATA | Jacquet Metal vs. Alliance Data Systems |
| GAMES OPERATORS vs. NEXON Co | GAMES OPERATORS vs. NEXON Co | GAMES OPERATORS vs. Take Two Interactive Software | GAMES OPERATORS vs. Aristocrat Leisure Limited |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |