Correlation Between Jacquet Metal and Haier Smart
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Haier Smart 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 Haier Smart 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 Haier Smart Home, you can compare the effects of market volatilities on Jacquet Metal and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Haier Smart.
Diversification Opportunities for Jacquet Metal and Haier Smart
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jacquet and Haier is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Haier Smart go up and down completely randomly.
Pair Corralation between Jacquet Metal and Haier Smart
Assuming the 90 days horizon Jacquet Metal is expected to generate 2.27 times less return on investment than Haier Smart. But when comparing it to its historical volatility, Jacquet Metal Service is 1.15 times less risky than Haier Smart. It trades about 0.06 of its potential returns per unit of risk. Haier Smart Home is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 142.00 in Haier Smart Home on November 3, 2024 and sell it today you would earn a total of 40.00 from holding Haier Smart Home or generate 28.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Haier Smart Home
Performance |
| Timeline |
| Jacquet Metal Service |
| Haier Smart Home |
Jacquet Metal and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Haier Smart
The main advantage of trading using opposite Jacquet Metal and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. Steel Dynamics | Jacquet Metal vs. Nippon Steel | Jacquet Metal vs. NIPPON STEEL SPADR |
| Haier Smart vs. Linedata Services SA | Haier Smart vs. Automatic Data Processing | Haier Smart vs. Northern Data AG | Haier Smart vs. Taiwan Semiconductor Manufacturing |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |