Correlation Between Jacquet Metal and GUARDANT HEALTH
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and GUARDANT HEALTH 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 GUARDANT HEALTH 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 GUARDANT HEALTH CL, you can compare the effects of market volatilities on Jacquet Metal and GUARDANT HEALTH 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 GUARDANT HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and GUARDANT HEALTH.
Diversification Opportunities for Jacquet Metal and GUARDANT HEALTH
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and GUARDANT is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and GUARDANT HEALTH CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUARDANT HEALTH CL 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 GUARDANT HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUARDANT HEALTH CL has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and GUARDANT HEALTH go up and down completely randomly.
Pair Corralation between Jacquet Metal and GUARDANT HEALTH
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the GUARDANT HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 2.58 times less risky than GUARDANT HEALTH. The stock trades about -0.04 of its potential returns per unit of risk. The GUARDANT HEALTH CL is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,491 in GUARDANT HEALTH CL on September 1, 2024 and sell it today you would earn a total of 827.00 from holding GUARDANT HEALTH CL or generate 33.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. GUARDANT HEALTH CL
Performance |
| Timeline |
| Jacquet Metal Service |
| GUARDANT HEALTH CL |
Jacquet Metal and GUARDANT HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and GUARDANT HEALTH
The main advantage of trading using opposite Jacquet Metal and GUARDANT HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, GUARDANT HEALTH 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 GUARDANT HEALTH will offset losses from the drop in GUARDANT HEALTH's long position.| Jacquet Metal vs. BORR DRILLING NEW | Jacquet Metal vs. Carsales | Jacquet Metal vs. Gruppo Mutuionline SpA | Jacquet Metal vs. GungHo Online Entertainment |
| GUARDANT HEALTH vs. ETFS Coffee ETC | GUARDANT HEALTH vs. Liberty Broadband | GUARDANT HEALTH vs. BJs Restaurants | GUARDANT HEALTH vs. KRISPY KREME DL 01 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stocks Directory Find actively traded stocks across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |