Correlation Between Hongkong and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Hongkong 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 Hongkong and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hongkong and and Jacquet Metal Service, you can compare the effects of market volatilities on Hongkong 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 Hongkong with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongkong and Jacquet Metal.
Diversification Opportunities for Hongkong and Jacquet Metal
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hongkong and Jacquet is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding The Hongkong and 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 Hongkong 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 The Hongkong and 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 Hongkong i.e., Hongkong and Jacquet Metal go up and down completely randomly.
Pair Corralation between Hongkong and Jacquet Metal
Assuming the 90 days horizon The Hongkong and is expected to generate 0.55 times more return on investment than Jacquet Metal. However, The Hongkong and is 1.83 times less risky than Jacquet Metal. It trades about -0.23 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.14 per unit of risk. If you would invest 74.00 in The Hongkong and on November 6, 2024 and sell it today you would lose (4.00) from holding The Hongkong and or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Hongkong and vs. Jacquet Metal Service
Performance |
| Timeline |
| The Hongkong |
| Jacquet Metal Service |
Hongkong and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongkong and Jacquet Metal
The main advantage of trading using opposite Hongkong and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongkong 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.| Hongkong vs. China Eastern Airlines | Hongkong vs. SINGAPORE AIRLINES | Hongkong vs. Air New Zealand | Hongkong vs. RYANAIR HLDGS ADR |
| Jacquet Metal vs. CARSALESCOM | Jacquet Metal vs. Easy Software AG | Jacquet Metal vs. Zoom Video Communications | Jacquet Metal vs. CarsalesCom |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |