Correlation Between Jacquet Metal and SAP SE

Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and SAP SE 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 SAP SE 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 SAP SE, you can compare the effects of market volatilities on Jacquet Metal and SAP SE 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 SAP SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and SAP SE.

Diversification Opportunities for Jacquet Metal and SAP SE

0.33

Correlation Coefficient

Jacquet Metal  SAP SE

Weak diversification

The 3 months correlation between Jacquet and SAP is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and SAP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE 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 SAP SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and SAP SE go up and down completely randomly.

Pair Corralation between Jacquet Metal and SAP SE

Assuming the 90 days horizon Jacquet Metal Service is expected to generate 1.41 times more return on investment than SAP SE. However, Jacquet Metal is 1.41 times more volatile than SAP SE. It trades about 0.09 of its potential returns per unit of risk. SAP SE is currently generating about 0.04 per unit of risk. If you would invest  1,946  in Jacquet Metal Service on April 24, 2025 and sell it today you would earn a total of  284.00  from holding Jacquet Metal Service or generate 14.59% return on investment over 90 days.

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

Jacquet Metal Service  vs.  SAP SE

Jacquet Metal Service

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jacquet Metal reported solid returns over the last few months and may actually be approaching a breakup point.

SAP SE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SAP SE are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, SAP SE is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jacquet Metal and SAP SE

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

The idea behind Jacquet Metal Service and SAP SE 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..