Correlation Between Jacquet Metal and Agricultural Bank
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Agricultural Bank 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 Agricultural Bank 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 Agricultural Bank of, you can compare the effects of market volatilities on Jacquet Metal and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Agricultural Bank.
Diversification Opportunities for Jacquet Metal and Agricultural Bank
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and Agricultural is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Agricultural Bank go up and down completely randomly.
Pair Corralation between Jacquet Metal and Agricultural Bank
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Agricultural Bank. In addition to that, Jacquet Metal is 1.8 times more volatile than Agricultural Bank of. It trades about -0.1 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.01 per unit of volatility. If you would invest 51.00 in Agricultural Bank of on November 8, 2024 and sell it today you would earn a total of 0.00 from holding Agricultural Bank of or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Agricultural Bank of
Performance |
| Timeline |
| Jacquet Metal Service |
| Agricultural Bank |
Jacquet Metal and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Agricultural Bank
The main advantage of trading using opposite Jacquet Metal and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Jacquet Metal vs. Norwegian Air Shuttle | Jacquet Metal vs. Westinghouse Air Brake | Jacquet Metal vs. Zijin Mining Group | Jacquet Metal vs. Coeur Mining |
| Agricultural Bank vs. Check Point Software | Agricultural Bank vs. Kingdee International Software | Agricultural Bank vs. Cognizant Technology Solutions | Agricultural Bank vs. UPDATE SOFTWARE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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