Correlation Between GAMING FAC and Jacquet Metal

Can any of the company-specific risk be diversified away by investing in both GAMING FAC 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 GAMING FAC and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GAMING FAC SA and Jacquet Metal Service, you can compare the effects of market volatilities on GAMING FAC 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 GAMING FAC with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and Jacquet Metal.

Diversification Opportunities for GAMING FAC and Jacquet Metal

-0.41

Correlation Coefficient

GAMING FAC  Jacquet Metal

Very good diversification

The 3 months correlation between GAMING and Jacquet is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC 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 GAMING FAC 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 GAMING FAC 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 GAMING FAC i.e., GAMING FAC and Jacquet Metal go up and down completely randomly.

Pair Corralation between GAMING FAC and Jacquet Metal

Assuming the 90 days horizon GAMING FAC SA is expected to under-perform the Jacquet Metal. In addition to that, GAMING FAC is 2.35 times more volatile than Jacquet Metal Service. It trades about -0.05 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  1,604  in Jacquet Metal Service on September 27, 2024 and sell it today you would earn a total of  96.00  from holding Jacquet Metal Service or generate 5.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

GAMING FAC SA  vs.  Jacquet Metal Service

GAMING FAC SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GAMING FAC SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Jacquet Metal Service

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Jacquet Metal may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with GAMING FAC and Jacquet Metal

The main advantage of trading using opposite GAMING FAC and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC 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.

The idea behind GAMING FAC SA and Jacquet Metal Service pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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..