Correlation Between JGC Corp and Eiffage SA
Can any of the company-specific risk be diversified away by investing in both JGC Corp and Eiffage SA 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 JGC Corp and Eiffage SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JGC Corp and Eiffage SA, you can compare the effects of market volatilities on JGC Corp and Eiffage SA 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 JGC Corp with a short position of Eiffage SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGC Corp and Eiffage SA.
Diversification Opportunities for JGC Corp and Eiffage SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JGC and Eiffage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JGC Corp and Eiffage SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eiffage SA and JGC Corp 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 JGC Corp are associated (or correlated) with Eiffage SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eiffage SA has no effect on the direction of JGC Corp i.e., JGC Corp and Eiffage SA go up and down completely randomly.
Pair Corralation between JGC Corp and Eiffage SA
Assuming the 90 days horizon JGC Corp is expected to under-perform the Eiffage SA. In addition to that, JGC Corp is 1.16 times more volatile than Eiffage SA. It trades about -0.02 of its total potential returns per unit of risk. Eiffage SA is currently generating about 0.02 per unit of volatility. If you would invest 10,216 in Eiffage SA on October 25, 2024 and sell it today you would earn a total of 267.00 from holding Eiffage SA or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 38.34% |
| Values | Daily Returns |
JGC Corp vs. Eiffage SA
Performance |
| Timeline |
| JGC Corp |
| Eiffage SA |
JGC Corp and Eiffage SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGC Corp and Eiffage SA
The main advantage of trading using opposite JGC Corp and Eiffage SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGC Corp position performs unexpectedly, Eiffage SA 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 Eiffage SA will offset losses from the drop in Eiffage SA's long position.| JGC Corp vs. Bilfinger SE ADR | JGC Corp vs. ACS Actividades De | JGC Corp vs. Acciona SA | JGC Corp vs. ACS Actividades de |
| Eiffage SA vs. Concrete Pumping Holdings | Eiffage SA vs. Orion Group Holdings | Eiffage SA vs. Matrix Service Co | Eiffage SA vs. Limbach Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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