Correlation Between Jacquet Metal and AES Corp
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and AES Corp 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 AES Corp 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 AES Corp, you can compare the effects of market volatilities on Jacquet Metal and AES Corp 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 AES Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and AES Corp.
Diversification Opportunities for Jacquet Metal and AES Corp
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and AES is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and AES Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AES Corp 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 AES Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AES Corp has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and AES Corp go up and down completely randomly.
Pair Corralation between Jacquet Metal and AES Corp
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.69 times more return on investment than AES Corp. However, Jacquet Metal Service is 1.45 times less risky than AES Corp. It trades about -0.01 of its potential returns per unit of risk. AES Corp is currently generating about -0.04 per unit of risk. If you would invest 1,793 in Jacquet Metal Service on September 12, 2024 and sell it today you would lose (132.00) from holding Jacquet Metal Service or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.44% |
| Values | Daily Returns |
Jacquet Metal Service vs. AES Corp
Performance |
| Timeline |
| Jacquet Metal Service |
| AES Corp |
Jacquet Metal and AES Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and AES Corp
The main advantage of trading using opposite Jacquet Metal and AES Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, AES Corp 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 AES Corp will offset losses from the drop in AES Corp's long position.| Jacquet Metal vs. Hong Kong Land | Jacquet Metal vs. Neometals | Jacquet Metal vs. Coor Service Management | Jacquet Metal vs. Fidelity Sustainable USD |
| AES Corp vs. JB Hunt Transport | AES Corp vs. Alior Bank SA | AES Corp vs. Royal Bank of | AES Corp vs. Erste Group 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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