Correlation Between Jacquet Metal and ZCCM Investments
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and ZCCM Investments 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 ZCCM Investments 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 ZCCM Investments Holdings, you can compare the effects of market volatilities on Jacquet Metal and ZCCM Investments 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 ZCCM Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and ZCCM Investments.
Diversification Opportunities for Jacquet Metal and ZCCM Investments
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and ZCCM is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and ZCCM Investments Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZCCM Investments Holdings 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 ZCCM Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZCCM Investments Holdings has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and ZCCM Investments go up and down completely randomly.
Pair Corralation between Jacquet Metal and ZCCM Investments
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.6 times more return on investment than ZCCM Investments. However, Jacquet Metal Service is 1.66 times less risky than ZCCM Investments. It trades about -0.06 of its potential returns per unit of risk. ZCCM Investments Holdings is currently generating about -0.05 per unit of risk. If you would invest 1,758 in Jacquet Metal Service on November 7, 2024 and sell it today you would lose (58.00) from holding Jacquet Metal Service or give up 3.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. ZCCM Investments Holdings
Performance |
| Timeline |
| Jacquet Metal Service |
| ZCCM Investments Holdings |
Jacquet Metal and ZCCM Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and ZCCM Investments
The main advantage of trading using opposite Jacquet Metal and ZCCM Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, ZCCM Investments 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 ZCCM Investments will offset losses from the drop in ZCCM Investments' long position.| Jacquet Metal vs. Derichebourg | Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs SA |
| ZCCM Investments vs. TotalEnergies EP Gabon | ZCCM Investments vs. Robertet SA | ZCCM Investments vs. EPC Groupe |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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