Correlation Between Jacquet Metal and HNI
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and HNI 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 HNI 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 HNI Corporation, you can compare the effects of market volatilities on Jacquet Metal and HNI 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 HNI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and HNI.
Diversification Opportunities for Jacquet Metal and HNI
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacquet and HNI is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and HNI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corporation 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 HNI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corporation has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and HNI go up and down completely randomly.
Pair Corralation between Jacquet Metal and HNI
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 1.18 times more return on investment than HNI. However, Jacquet Metal is 1.18 times more volatile than HNI Corporation. It trades about 0.11 of its potential returns per unit of risk. HNI Corporation is currently generating about -0.17 per unit of risk. If you would invest 1,552 in Jacquet Metal Service on January 16, 2025 and sell it today you would earn a total of 288.00 from holding Jacquet Metal Service or generate 18.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Jacquet Metal Service vs. HNI Corp.
Performance |
| Timeline |
| Jacquet Metal Service |
| HNI Corporation |
Jacquet Metal and HNI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and HNI
The main advantage of trading using opposite Jacquet Metal and HNI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, HNI 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 HNI will offset losses from the drop in HNI's long position.| Jacquet Metal vs. United Rentals | Jacquet Metal vs. GRIFFIN MINING LTD | Jacquet Metal vs. Fevertree Drinks PLC | Jacquet Metal vs. United Breweries Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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