Correlation Between Jacquet Metal and SITKA GOLD
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and SITKA 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 SITKA 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 SITKA GOLD P, you can compare the effects of market volatilities on Jacquet Metal and SITKA 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 SITKA GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and SITKA GOLD.
Diversification Opportunities for Jacquet Metal and SITKA GOLD
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jacquet and SITKA is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and SITKA GOLD P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITKA GOLD P 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 SITKA GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITKA GOLD P has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and SITKA GOLD go up and down completely randomly.
Pair Corralation between Jacquet Metal and SITKA GOLD
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the SITKA GOLD. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 4.59 times less risky than SITKA GOLD. The stock trades about -0.06 of its potential returns per unit of risk. The SITKA GOLD P is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 29.00 in SITKA GOLD P on September 4, 2024 and sell it today you would lose (1.00) from holding SITKA GOLD P or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. SITKA GOLD P
Performance |
| Timeline |
| Jacquet Metal Service |
| SITKA GOLD P |
Jacquet Metal and SITKA GOLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and SITKA GOLD
The main advantage of trading using opposite Jacquet Metal and SITKA GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, SITKA 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 SITKA GOLD will offset losses from the drop in SITKA GOLD's long position.| Jacquet Metal vs. HF SINCLAIR P | Jacquet Metal vs. Enter Air SA | Jacquet Metal vs. FUYO GENERAL LEASE | Jacquet Metal vs. Autohome ADR |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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