Correlation Between Jacquet Metal and Apple
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Jacquet Metal and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Apple.
Diversification Opportunities for Jacquet Metal and Apple
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacquet and Apple is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Apple go up and down completely randomly.
Pair Corralation between Jacquet Metal and Apple
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 1.26 times more return on investment than Apple. However, Jacquet Metal is 1.26 times more volatile than Apple Inc. It trades about -0.36 of its potential returns per unit of risk. Apple Inc is currently generating about -0.51 per unit of risk. If you would invest 1,700 in Jacquet Metal Service on October 24, 2024 and sell it today you would lose (214.00) from holding Jacquet Metal Service or give up 12.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Apple Inc
Performance |
| Timeline |
| Jacquet Metal Service |
| Apple Inc |
Jacquet Metal and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Apple
The main advantage of trading using opposite Jacquet Metal and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Jacquet Metal vs. Ultra Clean Holdings | Jacquet Metal vs. TYSON FOODS A | Jacquet Metal vs. BC IRON | Jacquet Metal vs. Carnegie Clean Energy |
| Apple vs. DISTRICT METALS | Apple vs. Jacquet Metal Service | Apple vs. VIVA WINE GROUP | Apple vs. CHINA TONTINE WINES |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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