Correlation Between Jacquet Metal and United Internet
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and United Internet 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 United Internet 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 United Internet AG, you can compare the effects of market volatilities on Jacquet Metal and United Internet 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 United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and United Internet.
Diversification Opportunities for Jacquet Metal and United Internet
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and United is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet 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 United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and United Internet go up and down completely randomly.
Pair Corralation between Jacquet Metal and United Internet
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the United Internet. In addition to that, Jacquet Metal is 1.8 times more volatile than United Internet AG. It trades about -0.27 of its total potential returns per unit of risk. United Internet AG is currently generating about -0.05 per unit of volatility. If you would invest 1,533 in United Internet AG on October 28, 2024 and sell it today you would lose (20.00) from holding United Internet AG or give up 1.3% 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. United Internet AG
Performance |
| Timeline |
| Jacquet Metal Service |
| United Internet AG |
Jacquet Metal and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and United Internet
The main advantage of trading using opposite Jacquet Metal and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.| Jacquet Metal vs. Take Two Interactive Software | Jacquet Metal vs. DETALION GAMES SA | Jacquet Metal vs. GigaMedia | Jacquet Metal vs. Corsair Gaming |
| United Internet vs. ELL ENVIRONHLDGS HD 0001 | United Internet vs. COSMOSTEEL HLDGS | United Internet vs. MOLSON RS BEVERAGE | United Internet vs. MAANSHAN IRON H |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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