Correlation Between Jacquet Metal and MTY Food
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and MTY Food 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 MTY Food 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 MTY Food Group, you can compare the effects of market volatilities on Jacquet Metal and MTY Food 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 MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and MTY Food.
Diversification Opportunities for Jacquet Metal and MTY Food
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and MTY is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group 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 MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and MTY Food go up and down completely randomly.
Pair Corralation between Jacquet Metal and MTY Food
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.98 times more return on investment than MTY Food. However, Jacquet Metal Service is 1.02 times less risky than MTY Food. It trades about 0.0 of its potential returns per unit of risk. MTY Food Group is currently generating about -0.02 per unit of risk. If you would invest 1,648 in Jacquet Metal Service on October 27, 2024 and sell it today you would lose (136.00) from holding Jacquet Metal Service or give up 8.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. MTY Food Group
Performance |
| Timeline |
| Jacquet Metal Service |
| MTY Food Group |
Jacquet Metal and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and MTY Food
The main advantage of trading using opposite Jacquet Metal and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.| Jacquet Metal vs. BlueScope Steel Limited | Jacquet Metal vs. Nippon Steel | Jacquet Metal vs. ELL ENVIRONHLDGS HD 0001 | Jacquet Metal vs. CALTAGIRONE EDITORE |
| MTY Food vs. Host Hotels Resorts | MTY Food vs. Xenia Hotels Resorts | MTY Food vs. Pebblebrook Hotel Trust | MTY Food vs. COMPUTERSHARE |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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