Correlation Between Jacquet Metal and Bank of Ireland
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Bank of Ireland 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 Bank of Ireland 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 Bank of Ireland, you can compare the effects of market volatilities on Jacquet Metal and Bank of Ireland 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 Bank of Ireland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Bank of Ireland.
Diversification Opportunities for Jacquet Metal and Bank of Ireland
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and Bank is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Bank of Ireland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Ireland 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 Bank of Ireland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Ireland has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Bank of Ireland go up and down completely randomly.
Pair Corralation between Jacquet Metal and Bank of Ireland
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Bank of Ireland. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.47 times less risky than Bank of Ireland. The stock trades about -0.01 of its potential returns per unit of risk. The Bank of Ireland is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 833.00 in Bank of Ireland on September 2, 2024 and sell it today you would lose (5.00) from holding Bank of Ireland or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Bank of Ireland
Performance |
| Timeline |
| Jacquet Metal Service |
| Bank of Ireland |
Jacquet Metal and Bank of Ireland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Bank of Ireland
The main advantage of trading using opposite Jacquet Metal and Bank of Ireland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Bank of Ireland 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 Bank of Ireland will offset losses from the drop in Bank of Ireland's long position.| Jacquet Metal vs. Zurich Insurance Group | Jacquet Metal vs. TR Property Investment | Jacquet Metal vs. Verizon Communications | Jacquet Metal vs. Air Products Chemicals |
| Bank of Ireland vs. SupplyMe Capital PLC | Bank of Ireland vs. Lloyds Banking Group | Bank of Ireland vs. Premier African Minerals | Bank of Ireland vs. SANTANDER UK 8 |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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