Correlation Between Jacquet Metal and Xenia Hotels
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Xenia Hotels 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 Jacquet Metal and Xenia Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and Xenia Hotels Resorts, you can compare the effects of market volatilities on Jacquet Metal and Xenia Hotels 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 Jacquet Metal with a short position of Xenia Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Xenia Hotels.
Diversification Opportunities for Jacquet Metal and Xenia Hotels
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacquet and Xenia is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Xenia Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenia Hotels Resorts and Jacquet Metal 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 Jacquet Metal Service are associated (or correlated) with Xenia Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenia Hotels Resorts has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Xenia Hotels go up and down completely randomly.
Pair Corralation between Jacquet Metal and Xenia Hotels
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.73 times more return on investment than Xenia Hotels. However, Jacquet Metal Service is 1.38 times less risky than Xenia Hotels. It trades about 0.01 of its potential returns per unit of risk. Xenia Hotels Resorts is currently generating about 0.0 per unit of risk. If you would invest 1,778 in Jacquet Metal Service on January 11, 2025 and sell it today you would lose (10.00) from holding Jacquet Metal Service or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Xenia Hotels Resorts
Performance |
| Timeline |
| Jacquet Metal Service |
| Xenia Hotels Resorts |
Jacquet Metal and Xenia Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Xenia Hotels
The main advantage of trading using opposite Jacquet Metal and Xenia Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Xenia Hotels 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 Xenia Hotels will offset losses from the drop in Xenia Hotels' long position.| Jacquet Metal vs. Urban Outfitters | Jacquet Metal vs. American Eagle Outfitters | Jacquet Metal vs. FARO Technologies | Jacquet Metal vs. Akamai Technologies |
| Xenia Hotels vs. Arrow Electronics | Xenia Hotels vs. Electronic Arts | Xenia Hotels vs. SEKISUI CHEMICAL | Xenia Hotels vs. Sanyo Chemical Industries |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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