Correlation Between Jacquet Metal and Hellenic Petroleum
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Hellenic Petroleum 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 Hellenic Petroleum 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 Hellenic Petroleum SA, you can compare the effects of market volatilities on Jacquet Metal and Hellenic Petroleum 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 Hellenic Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Hellenic Petroleum.
Diversification Opportunities for Jacquet Metal and Hellenic Petroleum
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and Hellenic is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Hellenic Petroleum SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Petroleum 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 Hellenic Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Petroleum has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Hellenic Petroleum go up and down completely randomly.
Pair Corralation between Jacquet Metal and Hellenic Petroleum
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Hellenic Petroleum. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.06 times less risky than Hellenic Petroleum. The stock trades about -0.11 of its potential returns per unit of risk. The Hellenic Petroleum SA is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 683.00 in Hellenic Petroleum SA on August 30, 2024 and sell it today you would lose (18.00) from holding Hellenic Petroleum SA or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Hellenic Petroleum SA
Performance |
| Timeline |
| Jacquet Metal Service |
| Hellenic Petroleum |
Jacquet Metal and Hellenic Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Hellenic Petroleum
The main advantage of trading using opposite Jacquet Metal and Hellenic Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Hellenic Petroleum 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 Hellenic Petroleum will offset losses from the drop in Hellenic Petroleum's long position.| Jacquet Metal vs. LION ONE METALS | Jacquet Metal vs. Insurance Australia Group | Jacquet Metal vs. United Insurance Holdings | Jacquet Metal vs. Ping An Insurance |
| Hellenic Petroleum vs. MICRONIC MYDATA | Hellenic Petroleum vs. Darden Restaurants | Hellenic Petroleum vs. DATAGROUP SE | Hellenic Petroleum vs. DICKER DATA LTD |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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