Correlation Between Concurrent Technologies and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies 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 Concurrent Technologies and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concurrent Technologies Plc and Jacquet Metal Service, you can compare the effects of market volatilities on Concurrent Technologies 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 Concurrent Technologies with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Jacquet Metal.
Diversification Opportunities for Concurrent Technologies and Jacquet Metal
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Concurrent and Jacquet is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc 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 Concurrent Technologies 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 Concurrent Technologies Plc 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 Concurrent Technologies i.e., Concurrent Technologies and Jacquet Metal go up and down completely randomly.
Pair Corralation between Concurrent Technologies and Jacquet Metal
Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 1.5 times more return on investment than Jacquet Metal. However, Concurrent Technologies is 1.5 times more volatile than Jacquet Metal Service. It trades about 0.13 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.0 per unit of risk. If you would invest 5,645 in Concurrent Technologies Plc on October 30, 2024 and sell it today you would earn a total of 12,755 from holding Concurrent Technologies Plc or generate 225.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
Concurrent Technologies Plc vs. Jacquet Metal Service
Performance |
| Timeline |
| Concurrent Technologies |
| Jacquet Metal Service |
Concurrent Technologies and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concurrent Technologies and Jacquet Metal
The main advantage of trading using opposite Concurrent Technologies and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies 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.| Concurrent Technologies vs. First Majestic Silver | Concurrent Technologies vs. MTI Wireless Edge | Concurrent Technologies vs. Verizon Communications | Concurrent Technologies vs. Dairy Farm International |
| Jacquet Metal vs. Berkshire Hathaway | Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Chocoladefabriken Lindt Spruengli |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |