Correlation Between Jacquet Metal and Claranova
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Claranova 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 Claranova 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 Claranova SE, you can compare the effects of market volatilities on Jacquet Metal and Claranova 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 Claranova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Claranova.
Diversification Opportunities for Jacquet Metal and Claranova
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and Claranova is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Claranova SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Claranova SE 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 Claranova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Claranova SE has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Claranova go up and down completely randomly.
Pair Corralation between Jacquet Metal and Claranova
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Claranova. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.29 times less risky than Claranova. The stock trades about 0.0 of its potential returns per unit of risk. The Claranova SE is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 143.00 in Claranova SE on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Claranova SE or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jacquet Metal Service vs. Claranova SE
Performance |
| Timeline |
| Jacquet Metal Service |
| Claranova SE |
Jacquet Metal and Claranova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Claranova
The main advantage of trading using opposite Jacquet Metal and Claranova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Claranova 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 Claranova will offset losses from the drop in Claranova's long position.| Jacquet Metal vs. Edenred SA | Jacquet Metal vs. Legrand SA | Jacquet Metal vs. Sodexo SA | Jacquet Metal vs. Wendel |
| Claranova vs. Solutions 30 SE | Claranova vs. BigBen Interactive | Claranova vs. SA Catana Group | Claranova vs. Solocal Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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