Correlation Between Jacquet Metal and NR 21
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and NR 21 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 NR 21 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 NR 21 SA, you can compare the effects of market volatilities on Jacquet Metal and NR 21 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 NR 21. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and NR 21.
Diversification Opportunities for Jacquet Metal and NR 21
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacquet and NR21 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and NR 21 SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NR 21 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 NR 21. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NR 21 SA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and NR 21 go up and down completely randomly.
Pair Corralation between Jacquet Metal and NR 21
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.5 times more return on investment than NR 21. However, Jacquet Metal Service is 2.0 times less risky than NR 21. It trades about 0.25 of its potential returns per unit of risk. NR 21 SA is currently generating about 0.07 per unit of risk. If you would invest 1,590 in Jacquet Metal Service on September 25, 2024 and sell it today you would earn a total of 120.00 from holding Jacquet Metal Service or generate 7.55% 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. NR 21 SA
Performance |
Timeline |
Jacquet Metal Service |
NR 21 SA |
Jacquet Metal and NR 21 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jacquet Metal and NR 21
The main advantage of trading using opposite Jacquet Metal and NR 21 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, NR 21 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 NR 21 will offset losses from the drop in NR 21's long position.Jacquet Metal vs. Thermador Groupe SA | Jacquet Metal vs. Rubis SCA | Jacquet Metal vs. Vicat SA | Jacquet Metal vs. Trigano SA |
NR 21 vs. Centrale dAchat Franaise | NR 21 vs. Passat Socit Anonyme | NR 21 vs. Damartex | NR 21 vs. Smcp SAS |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Commodity Directory Find actively traded commodities issued by global exchanges |