Correlation Between Jacquet Metal and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Manitou BF 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 Manitou BF 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 Manitou BF SA, you can compare the effects of market volatilities on Jacquet Metal and Manitou BF 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 Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Manitou BF.
Diversification Opportunities for Jacquet Metal and Manitou BF
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jacquet and Manitou is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Manitou BF SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitou BF 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 Manitou BF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitou BF SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Manitou BF go up and down completely randomly.
Pair Corralation between Jacquet Metal and Manitou BF
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.84 times more return on investment than Manitou BF. However, Jacquet Metal Service is 1.19 times less risky than Manitou BF. It trades about 0.0 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.23 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Manitou BF SA
Performance |
| Timeline |
| Jacquet Metal Service |
| Manitou BF SA |
Jacquet Metal and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Manitou BF
The main advantage of trading using opposite Jacquet Metal and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Manitou BF 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 Manitou BF will offset losses from the drop in Manitou BF's long position.| Jacquet Metal vs. Edenred SA | Jacquet Metal vs. Legrand SA | Jacquet Metal vs. Sodexo SA | Jacquet Metal vs. Wendel |
| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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