Correlation Between Jacquet Metal and Canadian General
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Canadian General 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 Canadian General 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 Canadian General Investments, you can compare the effects of market volatilities on Jacquet Metal and Canadian General 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 Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Canadian General.
Diversification Opportunities for Jacquet Metal and Canadian General
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and Canadian is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv 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 Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Canadian General go up and down completely randomly.
Pair Corralation between Jacquet Metal and Canadian General
Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 1.29 times more return on investment than Canadian General. However, Jacquet Metal is 1.29 times more volatile than Canadian General Investments. It trades about 0.22 of its potential returns per unit of risk. Canadian General Investments is currently generating about -0.21 per unit of risk. If you would invest 1,664 in Jacquet Metal Service on October 11, 2024 and sell it today you would earn a total of 87.00 from holding Jacquet Metal Service or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Canadian General Investments
Performance |
| Timeline |
| Jacquet Metal Service |
| Canadian General Inv |
Jacquet Metal and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Canadian General
The main advantage of trading using opposite Jacquet Metal and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Canadian General 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 Canadian General will offset losses from the drop in Canadian General's long position.| Jacquet Metal vs. Axfood AB | Jacquet Metal vs. McEwen Mining | Jacquet Metal vs. iShares Physical Silver | Jacquet Metal vs. Bisichi Mining PLC |
| Canadian General vs. One Media iP | Canadian General vs. LBG Media PLC | Canadian General vs. Cornish Metals | Canadian General vs. Jacquet Metal Service |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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