Correlation Between Trigano SA and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Trigano SA 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 Trigano SA and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Jacquet Metal Service, you can compare the effects of market volatilities on Trigano SA 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 Trigano SA with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Jacquet Metal.
Diversification Opportunities for Trigano SA and Jacquet Metal
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Trigano and Jacquet is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Trigano 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 Trigano SA 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 Trigano 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 Trigano SA i.e., Trigano SA and Jacquet Metal go up and down completely randomly.
Pair Corralation between Trigano SA and Jacquet Metal
Assuming the 90 days trading horizon Trigano SA is expected to generate 1.24 times more return on investment than Jacquet Metal. However, Trigano SA is 1.24 times more volatile than Jacquet Metal Service. It trades about -0.01 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.01 per unit of risk. If you would invest 14,487 in Trigano SA on November 3, 2024 and sell it today you would lose (1,257) from holding Trigano SA or give up 8.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Trigano SA vs. Jacquet Metal Service
Performance |
| Timeline |
| Trigano SA |
| Jacquet Metal Service |
Trigano SA and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Jacquet Metal
The main advantage of trading using opposite Trigano SA and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA 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.| Trigano SA vs. Fiducial Office Solutions | Trigano SA vs. Jacquet Metal Service | Trigano SA vs. Hotelim Socit Anonyme | Trigano SA vs. Mauna Kea Technologies |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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