Correlation Between Jacquet Metal and Affluent Medical
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Affluent Medical 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 Affluent Medical 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 Affluent Medical SAS, you can compare the effects of market volatilities on Jacquet Metal and Affluent Medical 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 Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Affluent Medical.
Diversification Opportunities for Jacquet Metal and Affluent Medical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacquet and Affluent is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Affluent Medical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affluent Medical SAS 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 Affluent Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affluent Medical SAS has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Affluent Medical go up and down completely randomly.
Pair Corralation between Jacquet Metal and Affluent Medical
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.43 times more return on investment than Affluent Medical. However, Jacquet Metal Service is 2.32 times less risky than Affluent Medical. It trades about -0.16 of its potential returns per unit of risk. Affluent Medical SAS is currently generating about -0.17 per unit of risk. If you would invest 1,650 in Jacquet Metal Service on August 29, 2024 and sell it today you would lose (96.00) from holding Jacquet Metal Service or give up 5.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Affluent Medical SAS
Performance |
| Timeline |
| Jacquet Metal Service |
| Affluent Medical SAS |
Jacquet Metal and Affluent Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Affluent Medical
The main advantage of trading using opposite Jacquet Metal and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Affluent Medical 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 Affluent Medical will offset losses from the drop in Affluent Medical's long position.| Jacquet Metal vs. Prodways Group SA | Jacquet Metal vs. Claranova SE | Jacquet Metal vs. DBV Technologies SA | Jacquet Metal vs. Manitou BF SA |
| Affluent Medical vs. Virbac SA | Affluent Medical vs. Boiron SA | Affluent Medical vs. Bonduelle SCA | Affluent Medical vs. LNA Sante SA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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