Correlation Between Jacquet Metal and AEON STORES
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and AEON STORES 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 AEON STORES 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 AEON STORES, you can compare the effects of market volatilities on Jacquet Metal and AEON STORES 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 AEON STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and AEON STORES.
Diversification Opportunities for Jacquet Metal and AEON STORES
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacquet and AEON is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and AEON STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON STORES 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 AEON STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON STORES has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and AEON STORES go up and down completely randomly.
Pair Corralation between Jacquet Metal and AEON STORES
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.98 times more return on investment than AEON STORES. However, Jacquet Metal Service is 1.02 times less risky than AEON STORES. It trades about -0.01 of its potential returns per unit of risk. AEON STORES is currently generating about -0.06 per unit of risk. If you would invest 1,668 in Jacquet Metal Service on October 17, 2024 and sell it today you would lose (12.00) from holding Jacquet Metal Service or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. AEON STORES
Performance |
| Timeline |
| Jacquet Metal Service |
| AEON STORES |
Jacquet Metal and AEON STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and AEON STORES
The main advantage of trading using opposite Jacquet Metal and AEON STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, AEON STORES 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 AEON STORES will offset losses from the drop in AEON STORES's long position.| Jacquet Metal vs. FIREWEED METALS P | Jacquet Metal vs. Take Two Interactive Software | Jacquet Metal vs. Alfa Financial Software | Jacquet Metal vs. Kingdee International Software |
| AEON STORES vs. Keck Seng Investments | AEON STORES vs. Guangdong Investment Limited | AEON STORES vs. JD SPORTS FASH | AEON STORES vs. Jacquet Metal Service |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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