Correlation Between Jacquet Metal and Largo SAS
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Largo SAS 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 Largo SAS 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 Largo SAS, you can compare the effects of market volatilities on Jacquet Metal and Largo SAS 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 Largo SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Largo SAS.
Diversification Opportunities for Jacquet Metal and Largo SAS
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jacquet and Largo is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Largo SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Largo 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 Largo SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Largo SAS has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Largo SAS go up and down completely randomly.
Pair Corralation between Jacquet Metal and Largo SAS
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.67 times more return on investment than Largo SAS. However, Jacquet Metal Service is 1.48 times less risky than Largo SAS. It trades about 0.15 of its potential returns per unit of risk. Largo SAS is currently generating about -0.12 per unit of risk. If you would invest 1,586 in Jacquet Metal Service on September 12, 2024 and sell it today you would earn a total of 74.00 from holding Jacquet Metal Service or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jacquet Metal Service vs. Largo SAS
Performance |
| Timeline |
| Jacquet Metal Service |
| Largo SAS |
Jacquet Metal and Largo SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Largo SAS
The main advantage of trading using opposite Jacquet Metal and Largo SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Largo SAS 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 Largo SAS will offset losses from the drop in Largo SAS's long position.| Jacquet Metal vs. Thermador Groupe SA | Jacquet Metal vs. Samse SA | Jacquet Metal vs. Rubis SCA | Jacquet Metal vs. Trigano SA |
| Largo SAS vs. Technip Energies BV | Largo SAS vs. Entech SE SAS | Largo SAS vs. Jacquet Metal Service | Largo SAS vs. Gaztransport Technigaz SAS |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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