Correlation Between COFCO Joycome and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Jacquet Metal 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 COFCO Joycome and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and Jacquet Metal Service, you can compare the effects of market volatilities on COFCO Joycome and Jacquet Metal 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 COFCO Joycome with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Jacquet Metal.
Diversification Opportunities for COFCO Joycome and Jacquet Metal
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between COFCO and Jacquet is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Jacquet Metal go up and down completely randomly.
Pair Corralation between COFCO Joycome and Jacquet Metal
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the Jacquet Metal. In addition to that, COFCO Joycome is 2.07 times more volatile than Jacquet Metal Service. It trades about -0.01 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.0 per unit of volatility. If you would invest 1,648 in Jacquet Metal Service on October 27, 2024 and sell it today you would lose (136.00) from holding Jacquet Metal Service or give up 8.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Jacquet Metal Service
Performance |
| Timeline |
| COFCO Joycome Foods |
| Jacquet Metal Service |
COFCO Joycome and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Jacquet Metal
The main advantage of trading using opposite COFCO Joycome and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| COFCO Joycome vs. CN DATANG C | COFCO Joycome vs. DATAGROUP SE | COFCO Joycome vs. RYU Apparel | COFCO Joycome vs. SAN MIGUEL BREWERY |
| Jacquet Metal vs. BlueScope Steel Limited | Jacquet Metal vs. Nippon Steel | Jacquet Metal vs. ELL ENVIRONHLDGS HD 0001 | Jacquet Metal vs. CALTAGIRONE EDITORE |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |