Correlation Between Jacquet Metal and Cofidur SA
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Cofidur SA 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 Cofidur SA 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 Cofidur SA, you can compare the effects of market volatilities on Jacquet Metal and Cofidur SA 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 Cofidur SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Cofidur SA.
Diversification Opportunities for Jacquet Metal and Cofidur SA
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and Cofidur is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Cofidur SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofidur SA 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 Cofidur SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofidur SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Cofidur SA go up and down completely randomly.
Pair Corralation between Jacquet Metal and Cofidur SA
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Cofidur SA. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.26 times less risky than Cofidur SA. The stock trades about -0.01 of its potential returns per unit of risk. The Cofidur SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 30,772 in Cofidur SA on September 14, 2024 and sell it today you would earn a total of 3,228 from holding Cofidur SA or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.87% |
| Values | Daily Returns |
Jacquet Metal Service vs. Cofidur SA
Performance |
| Timeline |
| Jacquet Metal Service |
| Cofidur SA |
Jacquet Metal and Cofidur SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Cofidur SA
The main advantage of trading using opposite Jacquet Metal and Cofidur SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Cofidur SA 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 Cofidur SA will offset losses from the drop in Cofidur SA's long position.| Jacquet Metal vs. Derichebourg | Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs SA |
| Cofidur SA vs. Groupe Guillin SA | Cofidur SA vs. Stef SA | Cofidur SA vs. SA Catana Group | Cofidur SA vs. Jacquet Metal Service |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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