Correlation Between Jacquet Metal and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and XLMedia 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 XLMedia 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 XLMedia PLC, you can compare the effects of market volatilities on Jacquet Metal and XLMedia 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 XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and XLMedia PLC.
Diversification Opportunities for Jacquet Metal and XLMedia PLC
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and XLMedia is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and XLMedia PLC go up and down completely randomly.
Pair Corralation between Jacquet Metal and XLMedia PLC
Assuming the 90 days trading horizon Jacquet Metal is expected to generate 1.24 times less return on investment than XLMedia PLC. But when comparing it to its historical volatility, Jacquet Metal Service is 3.72 times less risky than XLMedia PLC. It trades about 0.01 of its potential returns per unit of risk. XLMedia PLC is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,600 in XLMedia PLC on September 24, 2024 and sell it today you would lose (680.00) from holding XLMedia PLC or give up 42.5% 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. XLMedia PLC
Performance |
| Timeline |
| Jacquet Metal Service |
| XLMedia PLC |
Jacquet Metal and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and XLMedia PLC
The main advantage of trading using opposite Jacquet Metal and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, XLMedia 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| Jacquet Metal vs. Uniper SE | Jacquet Metal vs. Mulberry Group PLC | Jacquet Metal vs. London Security Plc | Jacquet Metal vs. Triad Group PLC |
| XLMedia PLC vs. Fulcrum Metals PLC | XLMedia PLC vs. Jacquet Metal Service | XLMedia PLC vs. Silvercorp Metals | XLMedia PLC vs. Premier Foods 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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