Correlation Between H2O Retailing and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both H2O Retailing 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 H2O Retailing and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H2O Retailing and Jacquet Metal Service, you can compare the effects of market volatilities on H2O Retailing 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 H2O Retailing with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of H2O Retailing and Jacquet Metal.
Diversification Opportunities for H2O Retailing and Jacquet Metal
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between H2O and Jacquet is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding H2O Retailing 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 H2O Retailing 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 H2O Retailing 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 H2O Retailing i.e., H2O Retailing and Jacquet Metal go up and down completely randomly.
Pair Corralation between H2O Retailing and Jacquet Metal
Assuming the 90 days horizon H2O Retailing is expected to generate 0.91 times more return on investment than Jacquet Metal. However, H2O Retailing is 1.1 times less risky than Jacquet Metal. It trades about 0.06 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.04 per unit of risk. If you would invest 1,310 in H2O Retailing on November 2, 2024 and sell it today you would earn a total of 120.00 from holding H2O Retailing or generate 9.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
H2O Retailing vs. Jacquet Metal Service
Performance |
| Timeline |
| H2O Retailing |
| Jacquet Metal Service |
H2O Retailing and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H2O Retailing and Jacquet Metal
The main advantage of trading using opposite H2O Retailing and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H2O Retailing 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.| H2O Retailing vs. DISTRICT METALS | H2O Retailing vs. GREENX METALS LTD | H2O Retailing vs. Nucletron Electronic Aktiengesellschaft | H2O Retailing vs. Kaiser Aluminum |
| Jacquet Metal vs. JAPAN TOBACCO UNSPADR12 | Jacquet Metal vs. MCEWEN MINING INC | Jacquet Metal vs. ANGLO ASIAN MINING | Jacquet Metal vs. Japan Tobacco |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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