Correlation Between Jacquet Metal and Sparebank
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Sparebank 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 Sparebank 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 Sparebank 1 SR, you can compare the effects of market volatilities on Jacquet Metal and Sparebank 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 Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Sparebank.
Diversification Opportunities for Jacquet Metal and Sparebank
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacquet and Sparebank is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Sparebank 1 SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparebank 1 SR 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 Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparebank 1 SR has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Sparebank go up and down completely randomly.
Pair Corralation between Jacquet Metal and Sparebank
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Sparebank. In addition to that, Jacquet Metal is 1.54 times more volatile than Sparebank 1 SR. It trades about -0.01 of its total potential returns per unit of risk. Sparebank 1 SR is currently generating about 0.08 per unit of volatility. If you would invest 11,869 in Sparebank 1 SR on September 14, 2024 and sell it today you would earn a total of 2,671 from holding Sparebank 1 SR or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Jacquet Metal Service vs. Sparebank 1 SR
Performance |
| Timeline |
| Jacquet Metal Service |
| Sparebank 1 SR |
Jacquet Metal and Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Sparebank
The main advantage of trading using opposite Jacquet Metal and Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Sparebank 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 Sparebank will offset losses from the drop in Sparebank's long position.| Jacquet Metal vs. Odyssean Investment Trust | Jacquet Metal vs. Aurora Investment Trust | Jacquet Metal vs. bet at home AG | Jacquet Metal vs. STMicroelectronics NV |
| Sparebank vs. Porvair plc | Sparebank vs. GreenX Metals | Sparebank vs. Morgan Advanced Materials | Sparebank vs. Metals Exploration Plc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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