Correlation Between Jacquet Metal and Entech SE
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Entech SE 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 Entech SE 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 Entech SE SAS, you can compare the effects of market volatilities on Jacquet Metal and Entech SE 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 Entech SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Entech SE.
Diversification Opportunities for Jacquet Metal and Entech SE
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and Entech is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Entech SE SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entech SE 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 Entech SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entech SE SAS has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Entech SE go up and down completely randomly.
Pair Corralation between Jacquet Metal and Entech SE
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.41 times more return on investment than Entech SE. However, Jacquet Metal Service is 2.45 times less risky than Entech SE. It trades about -0.03 of its potential returns per unit of risk. Entech SE SAS is currently generating about -0.02 per unit of risk. If you would invest 1,784 in Jacquet Metal Service on September 1, 2024 and sell it today you would lose (204.00) from holding Jacquet Metal Service or give up 11.43% 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. Entech SE SAS
Performance |
| Timeline |
| Jacquet Metal Service |
| Entech SE SAS |
Jacquet Metal and Entech SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Entech SE
The main advantage of trading using opposite Jacquet Metal and Entech SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Entech SE 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 Entech SE will offset losses from the drop in Entech SE's long position.| Jacquet Metal vs. Edenred SA | Jacquet Metal vs. Legrand SA | Jacquet Metal vs. Sodexo SA | Jacquet Metal vs. Wendel |
| Entech SE vs. Afyren SAS | Entech SE vs. Voltalia SA | Entech SE vs. Waga Energy SA | Entech SE vs. Haffner Energy 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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