Correlation Between Jacquet Metal and AMG Advanced
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and AMG Advanced 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 AMG Advanced 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 AMG Advanced Metallurgical, you can compare the effects of market volatilities on Jacquet Metal and AMG Advanced 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 AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and AMG Advanced.
Diversification Opportunities for Jacquet Metal and AMG Advanced
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacquet and AMG is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu 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 AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and AMG Advanced go up and down completely randomly.
Pair Corralation between Jacquet Metal and AMG Advanced
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.85 times more return on investment than AMG Advanced. However, Jacquet Metal Service is 1.17 times less risky than AMG Advanced. It trades about -0.12 of its potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about -0.19 per unit of risk. If you would invest 1,658 in Jacquet Metal Service on August 28, 2024 and sell it today you would lose (71.00) from holding Jacquet Metal Service or give up 4.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. AMG Advanced Metallurgical
Performance |
| Timeline |
| Jacquet Metal Service |
| AMG Advanced Metallu |
Jacquet Metal and AMG Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and AMG Advanced
The main advantage of trading using opposite Jacquet Metal and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, AMG Advanced 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 AMG Advanced will offset losses from the drop in AMG Advanced's long position.| Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Hyundai Motor | Jacquet Metal vs. Toyota Motor Corp |
| AMG Advanced vs. Samsung Electronics Co | AMG Advanced vs. Samsung Electronics Co | AMG Advanced vs. Hyundai Motor | AMG Advanced vs. Toyota Motor Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |