Correlation Between Comba Telecom and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Comba Telecom 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 Comba Telecom and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comba Telecom Systems and Jacquet Metal Service, you can compare the effects of market volatilities on Comba Telecom 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 Comba Telecom with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and Jacquet Metal.
Diversification Opportunities for Comba Telecom and Jacquet Metal
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Comba and Jacquet is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems 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 Comba Telecom 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 Comba Telecom Systems 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 Comba Telecom i.e., Comba Telecom and Jacquet Metal go up and down completely randomly.
Pair Corralation between Comba Telecom and Jacquet Metal
Assuming the 90 days trading horizon Comba Telecom Systems is expected to generate 2.92 times more return on investment than Jacquet Metal. However, Comba Telecom is 2.92 times more volatile than Jacquet Metal Service. It trades about 0.02 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.02 per unit of risk. If you would invest 13.00 in Comba Telecom Systems on October 11, 2024 and sell it today you would lose (1.00) from holding Comba Telecom Systems or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comba Telecom Systems vs. Jacquet Metal Service
Performance |
| Timeline |
| Comba Telecom Systems |
| Jacquet Metal Service |
Comba Telecom and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and Jacquet Metal
The main advantage of trading using opposite Comba Telecom and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom 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.| Comba Telecom vs. RYU Apparel | Comba Telecom vs. Astral Foods Limited | Comba Telecom vs. PLANT VEDA FOODS | Comba Telecom vs. Austevoll Seafood ASA |
| Jacquet Metal vs. 24SEVENOFFICE GROUP AB | Jacquet Metal vs. CITY OFFICE REIT | Jacquet Metal vs. DAIDO METAL TD | Jacquet Metal vs. Casio Computer CoLtd |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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