Correlation Between Caltagirone SpA and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Caltagirone SpA 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 Caltagirone SpA and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caltagirone SpA and Jacquet Metal Service, you can compare the effects of market volatilities on Caltagirone SpA 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 Caltagirone SpA with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caltagirone SpA and Jacquet Metal.
Diversification Opportunities for Caltagirone SpA and Jacquet Metal
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Caltagirone and Jacquet is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Caltagirone SpA 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 Caltagirone SpA 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 Caltagirone SpA 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 Caltagirone SpA i.e., Caltagirone SpA and Jacquet Metal go up and down completely randomly.
Pair Corralation between Caltagirone SpA and Jacquet Metal
Assuming the 90 days trading horizon Caltagirone SpA is expected to generate 1.91 times less return on investment than Jacquet Metal. In addition to that, Caltagirone SpA is 2.51 times more volatile than Jacquet Metal Service. It trades about 0.1 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.46 per unit of volatility. If you would invest 1,542 in Jacquet Metal Service on November 28, 2024 and sell it today you would earn a total of 238.00 from holding Jacquet Metal Service or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caltagirone SpA vs. Jacquet Metal Service
Performance |
| Timeline |
| Caltagirone SpA |
| Jacquet Metal Service |
Caltagirone SpA and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caltagirone SpA and Jacquet Metal
The main advantage of trading using opposite Caltagirone SpA and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caltagirone SpA 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.| Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc |
| Jacquet Metal vs. CAL MAINE FOODS | Jacquet Metal vs. COFCO Joycome Foods | Jacquet Metal vs. PLANT VEDA FOODS | Jacquet Metal vs. EBRO FOODS |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |