Correlation Between Jacquet Metal and Carlsberg A/S
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Carlsberg A/S 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 Carlsberg A/S 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 Carlsberg AS, you can compare the effects of market volatilities on Jacquet Metal and Carlsberg A/S 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 Carlsberg A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Carlsberg A/S.
Diversification Opportunities for Jacquet Metal and Carlsberg A/S
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and Carlsberg is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg A/S 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 Carlsberg A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg A/S has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Carlsberg A/S go up and down completely randomly.
Pair Corralation between Jacquet Metal and Carlsberg A/S
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.66 times more return on investment than Carlsberg A/S. However, Jacquet Metal Service is 1.52 times less risky than Carlsberg A/S. It trades about -0.1 of its potential returns per unit of risk. Carlsberg AS is currently generating about -0.16 per unit of risk. 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 |
Jacquet Metal Service vs. Carlsberg AS
Performance |
| Timeline |
| Jacquet Metal Service |
| Carlsberg A/S |
Jacquet Metal and Carlsberg A/S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Carlsberg A/S
The main advantage of trading using opposite Jacquet Metal and Carlsberg A/S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Carlsberg A/S 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 Carlsberg A/S will offset losses from the drop in Carlsberg A/S's long position.| Jacquet Metal vs. BORR DRILLING NEW | Jacquet Metal vs. Carsales | Jacquet Metal vs. Gruppo Mutuionline SpA | Jacquet Metal vs. GungHo Online Entertainment |
| 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 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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