Correlation Between Jacquet Metal and MG Plc
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and MG 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 MG 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 MG Plc, you can compare the effects of market volatilities on Jacquet Metal and MG 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 MG Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and MG Plc.
Diversification Opportunities for Jacquet Metal and MG Plc
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and MNG is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and MG Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MG 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 MG Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MG Plc has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and MG Plc go up and down completely randomly.
Pair Corralation between Jacquet Metal and MG Plc
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the MG Plc. In addition to that, Jacquet Metal is 1.88 times more volatile than MG Plc. It trades about -0.14 of its total potential returns per unit of risk. MG Plc is currently generating about 0.13 per unit of volatility. If you would invest 19,535 in MG Plc on September 4, 2024 and sell it today you would earn a total of 525.00 from holding MG Plc or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. MG Plc
Performance |
| Timeline |
| Jacquet Metal Service |
| MG Plc |
Jacquet Metal and MG Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and MG Plc
The main advantage of trading using opposite Jacquet Metal and MG Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, MG 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 MG Plc will offset losses from the drop in MG Plc's long position.| Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Hyundai Motor | Jacquet Metal vs. Toyota Motor Corp |
| MG Plc vs. Silvercorp Metals | MG Plc vs. Power Metal Resources | MG Plc vs. Gaztransport et Technigaz | MG Plc vs. Trainline 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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