Correlation Between British American and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both British American 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 British American and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between British American Tobacco and Jacquet Metal Service, you can compare the effects of market volatilities on British American 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 British American with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of British American and Jacquet Metal.
Diversification Opportunities for British American and Jacquet Metal
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between British and Jacquet is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding British American Tobacco 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 British American 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 British American Tobacco 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 British American i.e., British American and Jacquet Metal go up and down completely randomly.
Pair Corralation between British American and Jacquet Metal
Assuming the 90 days trading horizon British American Tobacco is expected to generate 0.54 times more return on investment than Jacquet Metal. However, British American Tobacco is 1.84 times less risky than Jacquet Metal. It trades about 0.43 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 3,314 in British American Tobacco on September 13, 2024 and sell it today you would earn a total of 285.00 from holding British American Tobacco or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
British American Tobacco vs. Jacquet Metal Service
Performance |
| Timeline |
| British American Tobacco |
| Jacquet Metal Service |
British American and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British American and Jacquet Metal
The main advantage of trading using opposite British American and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British American 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.| British American vs. Electronic Arts | British American vs. PKSHA TECHNOLOGY INC | British American vs. KIMBALL ELECTRONICS | British American vs. FANDIFI TECHNOLOGY P |
| Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. NIPPON STEEL SPADR | Jacquet Metal vs. Reliance Steel Aluminum | Jacquet Metal vs. Superior Plus Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |