Correlation Between Jacquet Metal and Halliburton
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Halliburton 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 Halliburton 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 Halliburton, you can compare the effects of market volatilities on Jacquet Metal and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Halliburton.
Diversification Opportunities for Jacquet Metal and Halliburton
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jacquet and Halliburton is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Halliburton go up and down completely randomly.
Pair Corralation between Jacquet Metal and Halliburton
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.86 times more return on investment than Halliburton. However, Jacquet Metal Service is 1.16 times less risky than Halliburton. It trades about -0.01 of its potential returns per unit of risk. Halliburton is currently generating about -0.03 per unit of risk. If you would invest 1,778 in Jacquet Metal Service on September 12, 2024 and sell it today you would lose (134.00) from holding Jacquet Metal Service or give up 7.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Halliburton
Performance |
| Timeline |
| Jacquet Metal Service |
| Halliburton |
Jacquet Metal and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Halliburton
The main advantage of trading using opposite Jacquet Metal and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.| Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. NIPPON STEEL SPADR | Jacquet Metal vs. Reliance Steel Aluminum | Jacquet Metal vs. Superior Plus Corp |
| Halliburton vs. Tenaris SA | Halliburton vs. NOV Inc | Halliburton vs. Superior Plus Corp | Halliburton vs. SIVERS SEMICONDUCTORS AB |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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