Correlation Between Jacquet Metal and ITV PLC
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and ITV PLC 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 ITV PLC 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 ITV PLC, you can compare the effects of market volatilities on Jacquet Metal and ITV PLC 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 ITV PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and ITV PLC.
Diversification Opportunities for Jacquet Metal and ITV PLC
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jacquet and ITV is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and ITV PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITV PLC 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 ITV PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITV PLC has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and ITV PLC go up and down completely randomly.
Pair Corralation between Jacquet Metal and ITV PLC
Assuming the 90 days trading horizon Jacquet Metal is expected to generate 1.22 times less return on investment than ITV PLC. But when comparing it to its historical volatility, Jacquet Metal Service is 1.18 times less risky than ITV PLC. It trades about 0.02 of its potential returns per unit of risk. ITV PLC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,499 in ITV PLC on September 14, 2024 and sell it today you would earn a total of 941.00 from holding ITV PLC or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Jacquet Metal Service vs. ITV PLC
Performance |
| Timeline |
| Jacquet Metal Service |
| ITV PLC |
Jacquet Metal and ITV PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and ITV PLC
The main advantage of trading using opposite Jacquet Metal and ITV PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, ITV PLC 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 ITV PLC will offset losses from the drop in ITV PLC's long position.| Jacquet Metal vs. Odyssean Investment Trust | Jacquet Metal vs. Aurora Investment Trust | Jacquet Metal vs. bet at home AG | Jacquet Metal vs. STMicroelectronics NV |
| ITV PLC vs. Charter Communications Cl | ITV PLC vs. Spirent Communications plc | ITV PLC vs. Cairo Communication SpA | ITV PLC vs. United Internet AG |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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