Correlation Between Jacquet Metal and Soditech
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Soditech 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 Soditech 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 Soditech SA, you can compare the effects of market volatilities on Jacquet Metal and Soditech 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 Soditech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Soditech.
Diversification Opportunities for Jacquet Metal and Soditech
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and Soditech is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Soditech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soditech 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 Soditech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soditech SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Soditech go up and down completely randomly.
Pair Corralation between Jacquet Metal and Soditech
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Soditech. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 2.21 times less risky than Soditech. The stock trades about -0.3 of its potential returns per unit of risk. The Soditech SA is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 104.00 in Soditech SA on October 23, 2024 and sell it today you would earn a total of 19.00 from holding Soditech SA or generate 18.27% 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. Soditech SA
Performance |
| Timeline |
| Jacquet Metal Service |
| Soditech SA |
Jacquet Metal and Soditech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Soditech
The main advantage of trading using opposite Jacquet Metal and Soditech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Soditech 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 Soditech will offset losses from the drop in Soditech's long position.| Jacquet Metal vs. Derichebourg | Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |