Correlation Between Jacquet Metal and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Safestore Holdings 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 Safestore Holdings 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 Safestore Holdings plc, you can compare the effects of market volatilities on Jacquet Metal and Safestore Holdings 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 Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Safestore Holdings.
Diversification Opportunities for Jacquet Metal and Safestore Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and Safestore is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings plc 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 Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Safestore Holdings go up and down completely randomly.
Pair Corralation between Jacquet Metal and Safestore Holdings
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.86 times more return on investment than Safestore Holdings. However, Jacquet Metal Service is 1.16 times less risky than Safestore Holdings. It trades about 0.01 of its potential returns per unit of risk. Safestore Holdings plc is currently generating about -0.01 per unit of risk. If you would invest 1,663 in Jacquet Metal Service on September 29, 2024 and sell it today you would earn a total of 27.00 from holding Jacquet Metal Service or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Jacquet Metal Service vs. Safestore Holdings plc
Performance |
| Timeline |
| Jacquet Metal Service |
| Safestore Holdings plc |
Jacquet Metal and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Safestore Holdings
The main advantage of trading using opposite Jacquet Metal and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Safestore Holdings 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' long position.| Jacquet Metal vs. Canadian Utilities Limited | Jacquet Metal vs. MICRONIC MYDATA | Jacquet Metal vs. TERADATA | Jacquet Metal vs. INFORMATION SVC GRP |
| Safestore Holdings vs. Apollo Investment Corp | Safestore Holdings vs. HK Electric Investments | Safestore Holdings vs. Virtus Investment Partners | Safestore Holdings vs. WisdomTree 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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