Correlation Between Jacquet Metal and Union Technologies
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Union 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 Union 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 Union Technologies Informatique, you can compare the effects of market volatilities on Jacquet Metal and Union 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 Union Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Union Technologies.
Diversification Opportunities for Jacquet Metal and Union Technologies
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and Union is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Union Technologies Informatiqu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union 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 Union Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Technologies has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Union Technologies go up and down completely randomly.
Pair Corralation between Jacquet Metal and Union Technologies
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.42 times more return on investment than Union Technologies. However, Jacquet Metal Service is 2.37 times less risky than Union Technologies. It trades about 0.36 of its potential returns per unit of risk. Union Technologies Informatique is currently generating about 0.01 per unit of risk. If you would invest 1,558 in Jacquet Metal Service on September 19, 2024 and sell it today you would earn a total of 164.00 from holding Jacquet Metal Service or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Union Technologies Informatiqu
Performance |
| Timeline |
| Jacquet Metal Service |
| Union Technologies |
Jacquet Metal and Union Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Union Technologies
The main advantage of trading using opposite Jacquet Metal and Union Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Union 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 Union Technologies will offset losses from the drop in Union Technologies' long position.| Jacquet Metal vs. Derichebourg | Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs SA |
| Union Technologies vs. Linedata Services SA | Union Technologies vs. Lectra SA | Union Technologies vs. Manitou BF SA | Union Technologies vs. Ossiam Minimum Variance |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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