Correlation Between BEBO Health and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both BEBO Health and Jacquet Metal 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 BEBO Health and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BEBO Health SA and Jacquet Metal Service, you can compare the effects of market volatilities on BEBO Health and Jacquet Metal 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 BEBO Health with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEBO Health and Jacquet Metal.
Diversification Opportunities for BEBO Health and Jacquet Metal
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between BEBO and Jacquet is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding BEBO Health SA and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service and BEBO Health 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 BEBO Health SA are associated (or correlated) with Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of BEBO Health i.e., BEBO Health and Jacquet Metal go up and down completely randomly.
Pair Corralation between BEBO Health and Jacquet Metal
Assuming the 90 days trading horizon BEBO Health SA is expected to under-perform the Jacquet Metal. In addition to that, BEBO Health is 2.18 times more volatile than Jacquet Metal Service. It trades about -0.22 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.07 per unit of volatility. If you would invest 2,025 in Jacquet Metal Service on January 20, 2025 and sell it today you would lose (85.00) from holding Jacquet Metal Service or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BEBO Health SA vs. Jacquet Metal Service
Performance |
| Timeline |
| BEBO Health SA |
| Jacquet Metal Service |
BEBO Health and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEBO Health and Jacquet Metal
The main advantage of trading using opposite BEBO Health and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEBO Health position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| BEBO Health vs. Air France KLM SA | BEBO Health vs. Marie Brizard Wine | BEBO Health vs. Linedata Services SA | BEBO Health vs. Jacquet Metal Service |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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