Correlation Between Jacquet Metal and Poujoulat
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Poujoulat 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 Poujoulat 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 Poujoulat SA, you can compare the effects of market volatilities on Jacquet Metal and Poujoulat 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 Poujoulat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Poujoulat.
Diversification Opportunities for Jacquet Metal and Poujoulat
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacquet and Poujoulat is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Poujoulat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poujoulat 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 Poujoulat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poujoulat SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Poujoulat go up and down completely randomly.
Pair Corralation between Jacquet Metal and Poujoulat
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.68 times more return on investment than Poujoulat. However, Jacquet Metal Service is 1.47 times less risky than Poujoulat. It trades about 0.01 of its potential returns per unit of risk. Poujoulat SA is currently generating about -0.06 per unit of risk. If you would invest 1,577 in Jacquet Metal Service on August 30, 2024 and sell it today you would lose (17.00) from holding Jacquet Metal Service or give up 1.08% 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. Poujoulat SA
Performance |
| Timeline |
| Jacquet Metal Service |
| Poujoulat SA |
Jacquet Metal and Poujoulat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Poujoulat
The main advantage of trading using opposite Jacquet Metal and Poujoulat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Poujoulat 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 Poujoulat will offset losses from the drop in Poujoulat's long position.| Jacquet Metal vs. Derichebourg | Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs SA |
| Poujoulat vs. Moulinvest | Poujoulat vs. SA Catana Group | Poujoulat vs. Piscines Desjoyaux SA | Poujoulat vs. Thermador Groupe 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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