Correlation Between Jacquet Metal and BROOKDALE
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and BROOKDALE 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 BROOKDALE 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 BROOKDALE SR LIVING, you can compare the effects of market volatilities on Jacquet Metal and BROOKDALE 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 BROOKDALE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and BROOKDALE.
Diversification Opportunities for Jacquet Metal and BROOKDALE
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and BROOKDALE is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and BROOKDALE SR LIVING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BROOKDALE SR LIVING 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 BROOKDALE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BROOKDALE SR LIVING has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and BROOKDALE go up and down completely randomly.
Pair Corralation between Jacquet Metal and BROOKDALE
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the BROOKDALE. In addition to that, Jacquet Metal is 1.44 times more volatile than BROOKDALE SR LIVING. It trades about -0.31 of its total potential returns per unit of risk. BROOKDALE SR LIVING is currently generating about -0.05 per unit of volatility. If you would invest 482.00 in BROOKDALE SR LIVING on October 25, 2024 and sell it today you would lose (8.00) from holding BROOKDALE SR LIVING or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Jacquet Metal Service vs. BROOKDALE SR LIVING
Performance |
| Timeline |
| Jacquet Metal Service |
| BROOKDALE SR LIVING |
Jacquet Metal and BROOKDALE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and BROOKDALE
The main advantage of trading using opposite Jacquet Metal and BROOKDALE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, BROOKDALE 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 BROOKDALE will offset losses from the drop in BROOKDALE's long position.| Jacquet Metal vs. CHEMICAL INDUSTRIES | Jacquet Metal vs. AIR PRODCHEMICALS | Jacquet Metal vs. Sekisui Chemical Co | Jacquet Metal vs. SEKISUI CHEMICAL |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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