Correlation Between Jacquet Metal and HEXINDO ADIPERKASA
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA, you can compare the effects of market volatilities on Jacquet Metal and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and HEXINDO ADIPERKASA.
Diversification Opportunities for Jacquet Metal and HEXINDO ADIPERKASA
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jacquet and HEXINDO is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and HEXINDO ADIPERKASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXINDO ADIPERKASA has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and HEXINDO ADIPERKASA go up and down completely randomly.
Pair Corralation between Jacquet Metal and HEXINDO ADIPERKASA
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 1.88 times more return on investment than HEXINDO ADIPERKASA. However, Jacquet Metal is 1.88 times more volatile than HEXINDO ADIPERKASA. It trades about 0.36 of its potential returns per unit of risk. HEXINDO ADIPERKASA is currently generating about -0.21 per unit of risk. If you would invest 1,514 in Jacquet Metal Service on September 15, 2024 and sell it today you would earn a total of 158.00 from holding Jacquet Metal Service or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. HEXINDO ADIPERKASA
Performance |
| Timeline |
| Jacquet Metal Service |
| HEXINDO ADIPERKASA |
Jacquet Metal and HEXINDO ADIPERKASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and HEXINDO ADIPERKASA
The main advantage of trading using opposite Jacquet Metal and HEXINDO ADIPERKASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA will offset losses from the drop in HEXINDO ADIPERKASA's long position.| Jacquet Metal vs. Reliance Steel Aluminum | Jacquet Metal vs. Superior Plus Corp | Jacquet Metal vs. SIVERS SEMICONDUCTORS AB | Jacquet Metal vs. Norsk Hydro ASA |
| HEXINDO ADIPERKASA vs. GREENX METALS LTD | HEXINDO ADIPERKASA vs. SINGAPORE AIRLINES | HEXINDO ADIPERKASA vs. Jacquet Metal Service | HEXINDO ADIPERKASA vs. Kaiser Aluminum |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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