Correlation Between Jacquet Metal and Implanet

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

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

Diversification Opportunities for Jacquet Metal and Implanet

-0.44

Correlation Coefficient

Jacquet Metal  Implanet

Very good diversification

The 3 months correlation between Jacquet and Implanet is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Implanet SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implanet SA and Jacquet Metal 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 Jacquet Metal Service are associated (or correlated) with Implanet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implanet SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Implanet go up and down completely randomly.

Pair Corralation between Jacquet Metal and Implanet

Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Implanet. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 7.21 times less risky than Implanet. The stock trades about 0.0 of its potential returns per unit of risk. The Implanet SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  4.28  in Implanet SA on September 27, 2024 and sell it today you would earn a total of  6.72  from holding Implanet SA or generate 157.01% return on investment over 90 days.

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

Jacquet Metal Service  vs.  Implanet SA

Jacquet Metal Service

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Jacquet Metal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Implanet SA

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Implanet SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Implanet may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Jacquet Metal and Implanet

The main advantage of trading using opposite Jacquet Metal and Implanet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Implanet 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 Implanet will offset losses from the drop in Implanet's long position.

The idea behind Jacquet Metal Service and Implanet SA 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.