Correlation Between Jacquet Metal and LBG Media
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and LBG Media 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 LBG Media 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 LBG Media PLC, you can compare the effects of market volatilities on Jacquet Metal and LBG Media 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 LBG Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and LBG Media.
Diversification Opportunities for Jacquet Metal and LBG Media
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jacquet and LBG is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and LBG Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBG Media 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 LBG Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBG Media PLC has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and LBG Media go up and down completely randomly.
Pair Corralation between Jacquet Metal and LBG Media
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the LBG Media. In addition to that, Jacquet Metal is 1.5 times more volatile than LBG Media PLC. It trades about -0.13 of its total potential returns per unit of risk. LBG Media PLC is currently generating about -0.07 per unit of volatility. If you would invest 12,700 in LBG Media PLC on November 6, 2024 and sell it today you would lose (300.00) from holding LBG Media PLC or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. LBG Media PLC
Performance |
| Timeline |
| Jacquet Metal Service |
| LBG Media PLC |
Jacquet Metal and LBG Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and LBG Media
The main advantage of trading using opposite Jacquet Metal and LBG Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, LBG Media 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 LBG Media will offset losses from the drop in LBG Media's long position.| Jacquet Metal vs. Batm Advanced Communications | Jacquet Metal vs. Cellnex Telecom SA | Jacquet Metal vs. Cairo Communication SpA | Jacquet Metal vs. Charter Communications Cl |
| LBG Media vs. Playtech Plc | LBG Media vs. International Biotechnology Trust | LBG Media vs. Travel Leisure Co | LBG Media vs. Southwest Airlines Co |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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