Correlation Between Jacquet Metal and Abingdon Health
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Abingdon Health 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 Abingdon Health 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 Abingdon Health Plc, you can compare the effects of market volatilities on Jacquet Metal and Abingdon Health 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 Abingdon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Abingdon Health.
Diversification Opportunities for Jacquet Metal and Abingdon Health
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and Abingdon is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Abingdon Health Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abingdon Health Plc 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 Abingdon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abingdon Health Plc has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Abingdon Health go up and down completely randomly.
Pair Corralation between Jacquet Metal and Abingdon Health
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.63 times more return on investment than Abingdon Health. However, Jacquet Metal Service is 1.59 times less risky than Abingdon Health. It trades about -0.14 of its potential returns per unit of risk. Abingdon Health Plc is currently generating about -0.22 per unit of risk. If you would invest 1,640 in Jacquet Metal Service on August 26, 2024 and sell it today you would lose (85.00) from holding Jacquet Metal Service or give up 5.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Abingdon Health Plc
Performance |
| Timeline |
| Jacquet Metal Service |
| Abingdon Health Plc |
Jacquet Metal and Abingdon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Abingdon Health
The main advantage of trading using opposite Jacquet Metal and Abingdon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Abingdon Health 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 Abingdon Health will offset losses from the drop in Abingdon Health'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 |
| Abingdon Health vs. Cairo Communication SpA | Abingdon Health vs. Zurich Insurance Group | Abingdon Health vs. Jacquet Metal Service | Abingdon Health vs. United Internet AG |
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.
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