Correlation Between Jacquet Metal and Hon Hai
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Hon Hai 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 Hon Hai 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 Hon Hai Precision, you can compare the effects of market volatilities on Jacquet Metal and Hon Hai 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 Hon Hai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Hon Hai.
Diversification Opportunities for Jacquet Metal and Hon Hai
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacquet and Hon is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Hon Hai Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hon Hai Precision 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 Hon Hai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hon Hai Precision has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Hon Hai go up and down completely randomly.
Pair Corralation between Jacquet Metal and Hon Hai
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Hon Hai. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 2.44 times less risky than Hon Hai. The stock trades about -0.21 of its potential returns per unit of risk. The Hon Hai Precision is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,230 in Hon Hai Precision on August 28, 2024 and sell it today you would lose (30.00) from holding Hon Hai Precision or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jacquet Metal Service vs. Hon Hai Precision
Performance |
| Timeline |
| Jacquet Metal Service |
| Hon Hai Precision |
Jacquet Metal and Hon Hai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Hon Hai
The main advantage of trading using opposite Jacquet Metal and Hon Hai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Hon Hai 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 Hon Hai will offset losses from the drop in Hon Hai's long position.| Jacquet Metal vs. Marie Brizard Wine | Jacquet Metal vs. Treasury Wine Estates | Jacquet Metal vs. GEELY AUTOMOBILE | Jacquet Metal vs. Gol Intelligent Airlines |
| Hon Hai vs. Lion One Metals | Hon Hai vs. WisdomTree Investments | Hon Hai vs. Jacquet Metal Service | Hon Hai vs. REGAL ASIAN INVESTMENTS |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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