Correlation Between Jacquet Metal and Ekinops SA
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Ekinops SA 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 Ekinops SA 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 Ekinops SA, you can compare the effects of market volatilities on Jacquet Metal and Ekinops SA 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 Ekinops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Ekinops SA.
Diversification Opportunities for Jacquet Metal and Ekinops SA
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacquet and Ekinops is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops 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 Ekinops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekinops SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Ekinops SA go up and down completely randomly.
Pair Corralation between Jacquet Metal and Ekinops SA
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.69 times more return on investment than Ekinops SA. However, Jacquet Metal Service is 1.45 times less risky than Ekinops SA. It trades about 0.0 of its potential returns per unit of risk. Ekinops SA is currently generating about -0.25 per unit of risk. If you would invest 1,586 in Jacquet Metal Service on September 1, 2024 and sell it today you would lose (6.00) from holding Jacquet Metal Service or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Ekinops SA
Performance |
| Timeline |
| Jacquet Metal Service |
| Ekinops SA |
Jacquet Metal and Ekinops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Ekinops SA
The main advantage of trading using opposite Jacquet Metal and Ekinops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Ekinops SA 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 Ekinops SA will offset losses from the drop in Ekinops SA's long position.| Jacquet Metal vs. Edenred SA | Jacquet Metal vs. Legrand SA | Jacquet Metal vs. Sodexo SA | Jacquet Metal vs. Wendel |
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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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