Correlation Between USWE SPORTS and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS 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 USWE SPORTS and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and Jacquet Metal Service, you can compare the effects of market volatilities on USWE SPORTS 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 USWE SPORTS with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and Jacquet Metal.
Diversification Opportunities for USWE SPORTS and Jacquet Metal
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between USWE and Jacquet is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB 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 USWE SPORTS 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 USWE SPORTS AB 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 USWE SPORTS i.e., USWE SPORTS and Jacquet Metal go up and down completely randomly.
Pair Corralation between USWE SPORTS and Jacquet Metal
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 3.51 times more return on investment than Jacquet Metal. However, USWE SPORTS is 3.51 times more volatile than Jacquet Metal Service. It trades about 0.26 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.13 per unit of risk. If you would invest 60.00 in USWE SPORTS AB on August 24, 2024 and sell it today you would earn a total of 16.00 from holding USWE SPORTS AB or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. Jacquet Metal Service
Performance |
| Timeline |
| USWE SPORTS AB |
| Jacquet Metal Service |
USWE SPORTS and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and Jacquet Metal
The main advantage of trading using opposite USWE SPORTS and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS 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.| USWE SPORTS vs. Addus HomeCare | USWE SPORTS vs. Tri Pointe Homes | USWE SPORTS vs. HomeToGo SE | USWE SPORTS vs. LG Display Co |
| Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Nippon Steel | Jacquet Metal vs. NIPPON STEEL SPADR |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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