Correlation Between Jacquet Metal and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Eastinco 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 Eastinco 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 Eastinco Mining Exploration, you can compare the effects of market volatilities on Jacquet Metal and Eastinco 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 Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Eastinco Mining.
Diversification Opportunities for Jacquet Metal and Eastinco Mining
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and Eastinco is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl 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 Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Eastinco Mining go up and down completely randomly.
Pair Corralation between Jacquet Metal and Eastinco Mining
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Eastinco Mining. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.33 times less risky than Eastinco Mining. The stock trades about -0.09 of its potential returns per unit of risk. The Eastinco Mining Exploration is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 4,700 in Eastinco Mining Exploration on November 2, 2024 and sell it today you would earn a total of 400.00 from holding Eastinco Mining Exploration or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Eastinco Mining Exploration
Performance |
| Timeline |
| Jacquet Metal Service |
| Eastinco Mining Expl |
Jacquet Metal and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Eastinco Mining
The main advantage of trading using opposite Jacquet Metal and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Eastinco 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| Jacquet Metal vs. Berkshire Hathaway | Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Chocoladefabriken Lindt Spruengli |
| Eastinco Mining vs. Spotify Technology SA | Eastinco Mining vs. TBC Bank Group | Eastinco Mining vs. Vitec Software Group | Eastinco Mining vs. BioPharma Credit 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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