Correlation Between Jacquet Metal and Comba Telecom
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Comba Telecom 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 Comba Telecom 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 Comba Telecom Systems, you can compare the effects of market volatilities on Jacquet Metal and Comba Telecom 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 Comba Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Comba Telecom.
Diversification Opportunities for Jacquet Metal and Comba Telecom
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacquet and Comba is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Comba Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comba Telecom Systems 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 Comba Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comba Telecom Systems has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Comba Telecom go up and down completely randomly.
Pair Corralation between Jacquet Metal and Comba Telecom
Assuming the 90 days horizon Jacquet Metal is expected to generate 3.82 times less return on investment than Comba Telecom. But when comparing it to its historical volatility, Jacquet Metal Service is 2.92 times less risky than Comba Telecom. It trades about 0.02 of its potential returns per unit of risk. Comba Telecom Systems is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Comba Telecom Systems on October 11, 2024 and sell it today you would lose (1.00) from holding Comba Telecom Systems or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Comba Telecom Systems
Performance |
| Timeline |
| Jacquet Metal Service |
| Comba Telecom Systems |
Jacquet Metal and Comba Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Comba Telecom
The main advantage of trading using opposite Jacquet Metal and Comba Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Comba Telecom 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 Comba Telecom will offset losses from the drop in Comba Telecom's long position.| Jacquet Metal vs. 24SEVENOFFICE GROUP AB | Jacquet Metal vs. CITY OFFICE REIT | Jacquet Metal vs. DAIDO METAL TD | Jacquet Metal vs. Casio Computer CoLtd |
| Comba Telecom vs. RYU Apparel | Comba Telecom vs. Astral Foods Limited | Comba Telecom vs. PLANT VEDA FOODS | Comba Telecom vs. Austevoll Seafood ASA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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