Correlation Between Ion Beam and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Ion Beam 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 Ion Beam and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ion Beam Applications and Jacquet Metal Service, you can compare the effects of market volatilities on Ion Beam 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 Ion Beam with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and Jacquet Metal.
Diversification Opportunities for Ion Beam and Jacquet Metal
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ion and Jacquet is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications 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 Ion Beam 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 Ion Beam Applications 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 Ion Beam i.e., Ion Beam and Jacquet Metal go up and down completely randomly.
Pair Corralation between Ion Beam and Jacquet Metal
Assuming the 90 days trading horizon Ion Beam Applications is expected to under-perform the Jacquet Metal. But the stock apears to be less risky and, when comparing its historical volatility, Ion Beam Applications is 1.06 times less risky than Jacquet Metal. The stock trades about -0.1 of its potential returns per unit of risk. The Jacquet Metal Service is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,665 in Jacquet Metal Service on October 12, 2024 and sell it today you would earn a total of 88.00 from holding Jacquet Metal Service or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ion Beam Applications vs. Jacquet Metal Service
Performance |
| Timeline |
| Ion Beam Applications |
| Jacquet Metal Service |
Ion Beam and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and Jacquet Metal
The main advantage of trading using opposite Ion Beam and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam 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.| Ion Beam vs. Ashtead Technology Holdings | Ion Beam vs. Polar Capital Technology | Ion Beam vs. Cars Inc | Ion Beam vs. Sartorius Stedim Biotech |
| Jacquet Metal vs. Moneta Money Bank | Jacquet Metal vs. Chrysalis Investments | Jacquet Metal vs. Tetragon Financial Group | Jacquet Metal vs. Cembra Money Bank |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |