Correlation Between Jacquet Metal and Equinox Gold
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Equinox Gold 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 Equinox Gold 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 Equinox Gold Corp, you can compare the effects of market volatilities on Jacquet Metal and Equinox Gold 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 Equinox Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Equinox Gold.
Diversification Opportunities for Jacquet Metal and Equinox Gold
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and Equinox is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Equinox Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinox Gold Corp 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 Equinox Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinox Gold Corp has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Equinox Gold go up and down completely randomly.
Pair Corralation between Jacquet Metal and Equinox Gold
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.41 times more return on investment than Equinox Gold. However, Jacquet Metal Service is 2.41 times less risky than Equinox Gold. It trades about 0.18 of its potential returns per unit of risk. Equinox Gold Corp is currently generating about -0.07 per unit of risk. If you would invest 1,644 in Jacquet Metal Service on October 12, 2024 and sell it today you would earn a total of 86.00 from holding Jacquet Metal Service or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Jacquet Metal Service vs. Equinox Gold Corp
Performance |
| Timeline |
| Jacquet Metal Service |
| Equinox Gold Corp |
Jacquet Metal and Equinox Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Equinox Gold
The main advantage of trading using opposite Jacquet Metal and Equinox Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Equinox Gold 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 Equinox Gold will offset losses from the drop in Equinox Gold's long position.| Jacquet Metal vs. Taiwan Semiconductor Manufacturing | Jacquet Metal vs. Nordic Semiconductor ASA | Jacquet Metal vs. Nomad Foods | Jacquet Metal vs. NAKED WINES PLC |
| Equinox Gold vs. Perseus Mining Limited | Equinox Gold vs. Jacquet Metal Service | Equinox Gold vs. The Home Depot | Equinox Gold vs. DFS Furniture PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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