Correlation Between Jacquet Metal and Ashtead Technology
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Ashtead Technology 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 Ashtead Technology 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 Ashtead Technology Holdings, you can compare the effects of market volatilities on Jacquet Metal and Ashtead Technology 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 Ashtead Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Ashtead Technology.
Diversification Opportunities for Jacquet Metal and Ashtead Technology
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and Ashtead is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Ashtead Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtead Technology 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 Ashtead Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashtead Technology has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Ashtead Technology go up and down completely randomly.
Pair Corralation between Jacquet Metal and Ashtead Technology
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.53 times more return on investment than Ashtead Technology. However, Jacquet Metal Service is 1.89 times less risky than Ashtead Technology. It trades about 0.23 of its potential returns per unit of risk. Ashtead Technology Holdings is currently generating about 0.02 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 Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Ashtead Technology Holdings
Performance |
| Timeline |
| Jacquet Metal Service |
| Ashtead Technology |
Jacquet Metal and Ashtead Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Ashtead Technology
The main advantage of trading using opposite Jacquet Metal and Ashtead Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Ashtead Technology 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 Ashtead Technology will offset losses from the drop in Ashtead Technology'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 |
| Ashtead Technology vs. CNH Industrial NV | Ashtead Technology vs. Jacquet Metal Service | Ashtead Technology vs. Lundin Mining Corp | Ashtead Technology vs. Foresight Environmental Infrastructure |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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