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
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jacquet and Haier is 0.38. 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 Service is expected to generate 1.02 times more return on investment than Haier Smart. However, Jacquet Metal is 1.02 times more volatile than Haier Smart Home. It trades about 0.4 of its potential returns per unit of risk. Haier Smart Home is currently generating about 0.15 per unit of risk. If you would invest 1,578 in Jacquet Metal Service on November 29, 2024 and sell it today you would earn a total of 202.00 from holding Jacquet Metal Service or generate 12.8% 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. PENN NATL GAMING | Jacquet Metal vs. TROPHY GAMES DEV | Jacquet Metal vs. Media and Games | Jacquet Metal vs. GAMING FAC SA |
| Haier Smart vs. Comba Telecom Systems | Haier Smart vs. COMBA TELECOM SYST | Haier Smart vs. Take Two Interactive Software | Haier Smart vs. FORMPIPE SOFTWARE AB |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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