Correlation Between Jacquet Metal and Crosswood
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Crosswood 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 Crosswood 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 Crosswood, you can compare the effects of market volatilities on Jacquet Metal and Crosswood 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 Crosswood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Crosswood.
Diversification Opportunities for Jacquet Metal and Crosswood
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jacquet and Crosswood is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Crosswood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crosswood 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 Crosswood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crosswood has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Crosswood go up and down completely randomly.
Pair Corralation between Jacquet Metal and Crosswood
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 2.32 times more return on investment than Crosswood. However, Jacquet Metal is 2.32 times more volatile than Crosswood. It trades about 0.52 of its potential returns per unit of risk. Crosswood is currently generating about 0.1 per unit of risk. If you would invest 1,598 in Jacquet Metal Service on November 27, 2024 and sell it today you would earn a total of 196.00 from holding Jacquet Metal Service or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Crosswood
Performance |
| Timeline |
| Jacquet Metal Service |
| Crosswood |
Jacquet Metal and Crosswood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Crosswood
The main advantage of trading using opposite Jacquet Metal and Crosswood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Crosswood 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 Crosswood will offset losses from the drop in Crosswood's long position.| Jacquet Metal vs. Derichebourg | Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs SA |
| Crosswood vs. Broadpeak SA | Crosswood vs. Entech SE SAS | Crosswood vs. Mauna Kea Technologies | Crosswood vs. Air France KLM 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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