Correlation Between Jacquet Metal and SWISS WATER
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and SWISS WATER 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 SWISS WATER 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 SWISS WATER DECAFFCOFFEE, you can compare the effects of market volatilities on Jacquet Metal and SWISS WATER 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 SWISS WATER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and SWISS WATER.
Diversification Opportunities for Jacquet Metal and SWISS WATER
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jacquet and SWISS is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and SWISS WATER DECAFFCOFFEE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWISS WATER DECAFFCOFFEE 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 SWISS WATER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWISS WATER DECAFFCOFFEE has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and SWISS WATER go up and down completely randomly.
Pair Corralation between Jacquet Metal and SWISS WATER
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.73 times more return on investment than SWISS WATER. However, Jacquet Metal Service is 1.37 times less risky than SWISS WATER. It trades about 0.13 of its potential returns per unit of risk. SWISS WATER DECAFFCOFFEE is currently generating about -0.09 per unit of risk. If you would invest 1,576 in Jacquet Metal Service on September 13, 2024 and sell it today you would earn a total of 66.00 from holding Jacquet Metal Service or generate 4.19% 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. SWISS WATER DECAFFCOFFEE
Performance |
| Timeline |
| Jacquet Metal Service |
| SWISS WATER DECAFFCOFFEE |
Jacquet Metal and SWISS WATER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and SWISS WATER
The main advantage of trading using opposite Jacquet Metal and SWISS WATER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, SWISS WATER 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 SWISS WATER will offset losses from the drop in SWISS WATER's long position.| Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. NIPPON STEEL SPADR | Jacquet Metal vs. Reliance Steel Aluminum | Jacquet Metal vs. Superior Plus Corp |
| SWISS WATER vs. Japan Post Insurance | SWISS WATER vs. CAL MAINE FOODS | SWISS WATER vs. REVO INSURANCE SPA | SWISS WATER vs. JJ SNACK FOODS |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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