Correlation Between Jacquet Metal and Exail Technologies
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Exail Technologies 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 Exail Technologies 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 Exail Technologies SA, you can compare the effects of market volatilities on Jacquet Metal and Exail Technologies 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 Exail Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Exail Technologies.
Diversification Opportunities for Jacquet Metal and Exail Technologies
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jacquet and Exail is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Exail Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exail Technologies 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 Exail Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exail Technologies has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Exail Technologies go up and down completely randomly.
Pair Corralation between Jacquet Metal and Exail Technologies
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Exail Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.48 times less risky than Exail Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Exail Technologies SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,722 in Exail Technologies SA on August 31, 2024 and sell it today you would earn a total of 24.00 from holding Exail Technologies SA or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Jacquet Metal Service vs. Exail Technologies SA
Performance |
| Timeline |
| Jacquet Metal Service |
| Exail Technologies |
Jacquet Metal and Exail Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Exail Technologies
The main advantage of trading using opposite Jacquet Metal and Exail Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Exail Technologies 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 Exail Technologies will offset losses from the drop in Exail Technologies' long position.| Jacquet Metal vs. Derichebourg | Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs SA |
| Exail Technologies vs. CMG Cleantech SA | Exail Technologies vs. Entech SE SAS | Exail Technologies vs. Reworld Media | Exail Technologies vs. Soditech 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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