Correlation Between Jacquet Metal and Extra Space
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Extra Space 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 Extra Space 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 Extra Space Storage, you can compare the effects of market volatilities on Jacquet Metal and Extra Space 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 Extra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Extra Space.
Diversification Opportunities for Jacquet Metal and Extra Space
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jacquet and Extra is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Extra Space Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extra Space Storage 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 Extra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extra Space Storage has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Extra Space go up and down completely randomly.
Pair Corralation between Jacquet Metal and Extra Space
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.73 times more return on investment than Extra Space. However, Jacquet Metal Service is 1.37 times less risky than Extra Space. It trades about 0.23 of its potential returns per unit of risk. Extra Space Storage is currently generating about -0.21 per unit of risk. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Extra Space Storage
Performance |
| Timeline |
| Jacquet Metal Service |
| Extra Space Storage |
Jacquet Metal and Extra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Extra Space
The main advantage of trading using opposite Jacquet Metal and Extra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Extra Space 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 Extra Space will offset losses from the drop in Extra Space's long position.| Jacquet Metal vs. Moneta Money Bank | Jacquet Metal vs. Chrysalis Investments | Jacquet Metal vs. Tetragon Financial Group | Jacquet Metal vs. Cembra Money Bank |
| Extra Space vs. URU Metals | Extra Space vs. Capital Metals PLC | Extra Space vs. Panther Metals PLC | Extra Space vs. Travel Leisure Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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