Correlation Between Jacquet Metal and Caltagirone SpA
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Caltagirone SpA 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 Caltagirone SpA 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 Caltagirone SpA, you can compare the effects of market volatilities on Jacquet Metal and Caltagirone SpA 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 Caltagirone SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Caltagirone SpA.
Diversification Opportunities for Jacquet Metal and Caltagirone SpA
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and Caltagirone is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Caltagirone SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caltagirone SpA 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 Caltagirone SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caltagirone SpA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Caltagirone SpA go up and down completely randomly.
Pair Corralation between Jacquet Metal and Caltagirone SpA
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Caltagirone SpA. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.2 times less risky than Caltagirone SpA. The stock trades about -0.03 of its potential returns per unit of risk. The Caltagirone SpA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 506.00 in Caltagirone SpA on August 30, 2024 and sell it today you would earn a total of 90.00 from holding Caltagirone SpA or generate 17.79% 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. Caltagirone SpA
Performance |
| Timeline |
| Jacquet Metal Service |
| Caltagirone SpA |
Jacquet Metal and Caltagirone SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Caltagirone SpA
The main advantage of trading using opposite Jacquet Metal and Caltagirone SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Caltagirone SpA 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 Caltagirone SpA will offset losses from the drop in Caltagirone SpA'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 |
| Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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