Correlation Between Peijia Medical and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Peijia Medical 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 Peijia Medical and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peijia Medical Limited and Jacquet Metal Service, you can compare the effects of market volatilities on Peijia Medical 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 Peijia Medical with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peijia Medical and Jacquet Metal.
Diversification Opportunities for Peijia Medical and Jacquet Metal
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Peijia and Jacquet is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Peijia Medical Limited 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 Peijia Medical 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 Peijia Medical Limited 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 Peijia Medical i.e., Peijia Medical and Jacquet Metal go up and down completely randomly.
Pair Corralation between Peijia Medical and Jacquet Metal
Assuming the 90 days horizon Peijia Medical Limited is expected to generate 1.37 times more return on investment than Jacquet Metal. However, Peijia Medical is 1.37 times more volatile than Jacquet Metal Service. It trades about -0.15 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.33 per unit of risk. If you would invest 48.00 in Peijia Medical Limited on October 29, 2024 and sell it today you would lose (4.00) from holding Peijia Medical Limited or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peijia Medical Limited vs. Jacquet Metal Service
Performance |
| Timeline |
| Peijia Medical |
| Jacquet Metal Service |
Peijia Medical and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peijia Medical and Jacquet Metal
The main advantage of trading using opposite Peijia Medical and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peijia Medical 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.| Peijia Medical vs. SCIENCE IN SPORT | Peijia Medical vs. Methode Electronics | Peijia Medical vs. UMC Electronics Co | Peijia Medical vs. Richardson Electronics |
| Jacquet Metal vs. Take Two Interactive Software | Jacquet Metal vs. DETALION GAMES SA | Jacquet Metal vs. GigaMedia | Jacquet Metal vs. Corsair Gaming |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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