Correlation Between Jacquet Metal and Cogra 48
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Cogra 48 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 Cogra 48 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 Cogra 48 Socit, you can compare the effects of market volatilities on Jacquet Metal and Cogra 48 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 Cogra 48. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Cogra 48.
Diversification Opportunities for Jacquet Metal and Cogra 48
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and Cogra is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Cogra 48 Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogra 48 Socit 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 Cogra 48. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogra 48 Socit has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Cogra 48 go up and down completely randomly.
Pair Corralation between Jacquet Metal and Cogra 48
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Cogra 48. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.31 times less risky than Cogra 48. The stock trades about -0.15 of its potential returns per unit of risk. The Cogra 48 Socit is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 616.00 in Cogra 48 Socit on August 30, 2024 and sell it today you would lose (24.00) from holding Cogra 48 Socit or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Cogra 48 Socit
Performance |
| Timeline |
| Jacquet Metal Service |
| Cogra 48 Socit |
Jacquet Metal and Cogra 48 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Cogra 48
The main advantage of trading using opposite Jacquet Metal and Cogra 48 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Cogra 48 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 Cogra 48 will offset losses from the drop in Cogra 48's long position.| Jacquet Metal vs. Derichebourg | Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs SA |
| Cogra 48 vs. Moulinvest | Cogra 48 vs. Poujoulat SA | Cogra 48 vs. Delfingen | Cogra 48 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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