Correlation Between Jacquet Metal and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Lundin Mining 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 Lundin Mining 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 Lundin Mining Corp, you can compare the effects of market volatilities on Jacquet Metal and Lundin Mining 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 Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Lundin Mining.
Diversification Opportunities for Jacquet Metal and Lundin Mining
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacquet and Lundin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Lundin Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Mining 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 Lundin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Mining Corp has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Lundin Mining go up and down completely randomly.
Pair Corralation between Jacquet Metal and Lundin Mining
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 1.03 times more return on investment than Lundin Mining. However, Jacquet Metal is 1.03 times more volatile than Lundin Mining Corp. It trades about 0.11 of its potential returns per unit of risk. Lundin Mining Corp is currently generating about -0.04 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 74.00 from holding Jacquet Metal Service or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Lundin Mining Corp
Performance |
| Timeline |
| Jacquet Metal Service |
| Lundin Mining Corp |
Jacquet Metal and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Lundin Mining
The main advantage of trading using opposite Jacquet Metal and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Lundin Mining 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 Lundin Mining will offset losses from the drop in Lundin Mining'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 |
| Lundin Mining vs. Hong Kong Land | Lundin Mining vs. Neometals | Lundin Mining vs. Coor Service Management | Lundin Mining vs. Fidelity Sustainable USD |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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