Correlation Between Jacquet Metal and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Atalaya 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 Atalaya 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 Atalaya Mining, you can compare the effects of market volatilities on Jacquet Metal and Atalaya 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 Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Atalaya Mining.
Diversification Opportunities for Jacquet Metal and Atalaya Mining
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and Atalaya is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining 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 Atalaya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atalaya Mining has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Atalaya Mining go up and down completely randomly.
Pair Corralation between Jacquet Metal and Atalaya Mining
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 1.17 times more return on investment than Atalaya Mining. However, Jacquet Metal is 1.17 times more volatile than Atalaya Mining. It trades about -0.09 of its potential returns per unit of risk. Atalaya Mining is currently generating about -0.12 per unit of risk. If you would invest 1,741 in Jacquet Metal Service on November 2, 2024 and sell it today you would lose (78.00) from holding Jacquet Metal Service or give up 4.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Atalaya Mining
Performance |
| Timeline |
| Jacquet Metal Service |
| Atalaya Mining |
Jacquet Metal and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Atalaya Mining
The main advantage of trading using opposite Jacquet Metal and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Atalaya 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 Atalaya Mining will offset losses from the drop in Atalaya 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 |
| Atalaya Mining vs. Berner Kantonalbank AG | Atalaya Mining vs. Commerzbank AG | Atalaya Mining vs. Compal Electronics GDR | Atalaya Mining vs. Naked Wines 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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