Correlation Between Jacquet Metal and LEWAG HOLDING
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and LEWAG HOLDING 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 LEWAG HOLDING 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 LEWAG HOLDING AG, you can compare the effects of market volatilities on Jacquet Metal and LEWAG HOLDING 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 LEWAG HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and LEWAG HOLDING.
Diversification Opportunities for Jacquet Metal and LEWAG HOLDING
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and LEWAG is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and LEWAG HOLDING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEWAG HOLDING AG 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 LEWAG HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEWAG HOLDING AG has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and LEWAG HOLDING go up and down completely randomly.
Pair Corralation between Jacquet Metal and LEWAG HOLDING
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.62 times more return on investment than LEWAG HOLDING. However, Jacquet Metal Service is 1.61 times less risky than LEWAG HOLDING. It trades about 0.13 of its potential returns per unit of risk. LEWAG HOLDING AG is currently generating about -0.03 per unit of risk. If you would invest 1,576 in Jacquet Metal Service on September 13, 2024 and sell it today you would earn a total of 66.00 from holding Jacquet Metal Service or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jacquet Metal Service vs. LEWAG HOLDING AG
Performance |
| Timeline |
| Jacquet Metal Service |
| LEWAG HOLDING AG |
Jacquet Metal and LEWAG HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and LEWAG HOLDING
The main advantage of trading using opposite Jacquet Metal and LEWAG HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, LEWAG HOLDING 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 LEWAG HOLDING will offset losses from the drop in LEWAG HOLDING's long position.| Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. NIPPON STEEL SPADR | Jacquet Metal vs. Reliance Steel Aluminum | Jacquet Metal vs. Superior Plus Corp |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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