Correlation Between Prodways Group and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Prodways Group 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 Prodways Group and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prodways Group SA and Jacquet Metal Service, you can compare the effects of market volatilities on Prodways Group 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 Prodways Group with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prodways Group and Jacquet Metal.
Diversification Opportunities for Prodways Group and Jacquet Metal
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prodways and Jacquet is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Prodways Group 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 Prodways Group 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 Prodways Group 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 Prodways Group i.e., Prodways Group and Jacquet Metal go up and down completely randomly.
Pair Corralation between Prodways Group and Jacquet Metal
Assuming the 90 days trading horizon Prodways Group SA is expected to under-perform the Jacquet Metal. In addition to that, Prodways Group is 1.17 times more volatile than Jacquet Metal Service. It trades about -0.14 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.1 per unit of volatility. If you would invest 1,636 in Jacquet Metal Service on August 25, 2024 and sell it today you would lose (58.00) from holding Jacquet Metal Service or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prodways Group SA vs. Jacquet Metal Service
Performance |
| Timeline |
| Prodways Group SA |
| Jacquet Metal Service |
Prodways Group and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prodways Group and Jacquet Metal
The main advantage of trading using opposite Prodways Group and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prodways Group 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.| Prodways Group vs. Balyo SA | Prodways Group vs. Lumibird SA | Prodways Group vs. Chargeurs SA | Prodways Group vs. Figeac Aero SA |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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