Correlation Between COSMOSTEEL HLDGS and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSMOSTEEL HLDGS and Jacquet Metal Service, you can compare the effects of market volatilities on COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and Jacquet Metal.
Diversification Opportunities for COSMOSTEEL HLDGS and Jacquet Metal
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between COSMOSTEEL and Jacquet is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS i.e., COSMOSTEEL HLDGS and Jacquet Metal go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and Jacquet Metal
Assuming the 90 days trading horizon COSMOSTEEL HLDGS is expected to generate 1.51 times more return on investment than Jacquet Metal. However, COSMOSTEEL HLDGS is 1.51 times more volatile than Jacquet Metal Service. It trades about 0.01 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.12 per unit of risk. If you would invest 6.00 in COSMOSTEEL HLDGS on August 29, 2024 and sell it today you would earn a total of 0.00 from holding COSMOSTEEL HLDGS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMOSTEEL HLDGS vs. Jacquet Metal Service
Performance |
| Timeline |
| COSMOSTEEL HLDGS |
| Jacquet Metal Service |
COSMOSTEEL HLDGS and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMOSTEEL HLDGS and Jacquet Metal
The main advantage of trading using opposite COSMOSTEEL HLDGS and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS 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.| COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Superior Plus Corp | COSMOSTEEL HLDGS vs. SIVERS SEMICONDUCTORS AB |
| Jacquet Metal vs. Steel Dynamics | Jacquet Metal vs. Superior Plus Corp | Jacquet Metal vs. SIVERS SEMICONDUCTORS AB | Jacquet Metal vs. Identiv |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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