Correlation Between MTY Food and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both MTY Food 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 MTY Food and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MTY Food Group and Jacquet Metal Service, you can compare the effects of market volatilities on MTY Food 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 MTY Food with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and Jacquet Metal.
Diversification Opportunities for MTY Food and Jacquet Metal
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between MTY and Jacquet is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group 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 MTY Food 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 MTY Food Group 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 MTY Food i.e., MTY Food and Jacquet Metal go up and down completely randomly.
Pair Corralation between MTY Food and Jacquet Metal
Assuming the 90 days horizon MTY Food Group is expected to under-perform the Jacquet Metal. In addition to that, MTY Food is 1.02 times more volatile than Jacquet Metal Service. It trades about -0.02 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 26, 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 | 99.8% |
| Values | Daily Returns |
MTY Food Group vs. Jacquet Metal Service
Performance |
| Timeline |
| MTY Food Group |
| Jacquet Metal Service |
MTY Food and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and Jacquet Metal
The main advantage of trading using opposite MTY Food and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food 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.| MTY Food vs. Host Hotels Resorts | MTY Food vs. Xenia Hotels Resorts | MTY Food vs. Pebblebrook Hotel Trust | MTY Food vs. COMPUTERSHARE |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |