Correlation Between Jacquet Metal and Devon Energy
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Devon Energy 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 Devon Energy 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 Devon Energy Corp, you can compare the effects of market volatilities on Jacquet Metal and Devon Energy 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 Devon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Devon Energy.
Diversification Opportunities for Jacquet Metal and Devon Energy
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and Devon is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Devon Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Devon Energy 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 Devon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Devon Energy Corp has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Devon Energy go up and down completely randomly.
Pair Corralation between Jacquet Metal and Devon Energy
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 1.08 times more return on investment than Devon Energy. However, Jacquet Metal is 1.08 times more volatile than Devon Energy Corp. It trades about 0.11 of its potential returns per unit of risk. Devon Energy Corp is currently generating about -0.25 per unit of risk. If you would invest 1,591 in Jacquet Metal Service on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Jacquet Metal Service or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Devon Energy Corp
Performance |
| Timeline |
| Jacquet Metal Service |
| Devon Energy Corp |
Jacquet Metal and Devon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Devon Energy
The main advantage of trading using opposite Jacquet Metal and Devon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Devon Energy 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 Devon Energy will offset losses from the drop in Devon Energy'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 |
| Devon Energy vs. Neometals | Devon Energy vs. Cornish Metals | Devon Energy vs. Cairn Homes PLC | Devon Energy vs. Jacquet Metal Service |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |