Correlation Between Retail Estates and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Retail Estates 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 Retail Estates and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Estates NV and Jacquet Metal Service, you can compare the effects of market volatilities on Retail Estates 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 Retail Estates with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and Jacquet Metal.
Diversification Opportunities for Retail Estates and Jacquet Metal
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Retail and Jacquet is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates NV 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 Retail Estates 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 Retail Estates NV 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 Retail Estates i.e., Retail Estates and Jacquet Metal go up and down completely randomly.
Pair Corralation between Retail Estates and Jacquet Metal
Assuming the 90 days horizon Retail Estates NV is expected to under-perform the Jacquet Metal. But the stock apears to be less risky and, when comparing its historical volatility, Retail Estates NV is 1.45 times less risky than Jacquet Metal. The stock trades about -0.15 of its potential returns per unit of risk. The Jacquet Metal Service is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,592 in Jacquet Metal Service on October 12, 2024 and sell it today you would earn a total of 138.00 from holding Jacquet Metal Service or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Retail Estates NV vs. Jacquet Metal Service
Performance |
| Timeline |
| Retail Estates NV |
| Jacquet Metal Service |
Retail Estates and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and Jacquet Metal
The main advantage of trading using opposite Retail Estates and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates 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.| Retail Estates vs. Superior Plus Corp | Retail Estates vs. NMI Holdings | Retail Estates vs. SIVERS SEMICONDUCTORS AB | Retail Estates vs. Talanx AG |
| Jacquet Metal vs. Taiwan Semiconductor Manufacturing | Jacquet Metal vs. Nordic Semiconductor ASA | Jacquet Metal vs. Nomad Foods | Jacquet Metal vs. NAKED WINES PLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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