Correlation Between Jacquet Metal and RETAIL FOOD
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and RETAIL FOOD 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 RETAIL FOOD 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 RETAIL FOOD GROUP, you can compare the effects of market volatilities on Jacquet Metal and RETAIL FOOD 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 RETAIL FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and RETAIL FOOD.
Diversification Opportunities for Jacquet Metal and RETAIL FOOD
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacquet and RETAIL is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and RETAIL FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RETAIL FOOD GROUP 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 RETAIL FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RETAIL FOOD GROUP has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and RETAIL FOOD go up and down completely randomly.
Pair Corralation between Jacquet Metal and RETAIL FOOD
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.56 times more return on investment than RETAIL FOOD. However, Jacquet Metal Service is 1.8 times less risky than RETAIL FOOD. It trades about 0.02 of its potential returns per unit of risk. RETAIL FOOD GROUP is currently generating about -0.02 per unit of risk. If you would invest 1,616 in Jacquet Metal Service on October 11, 2024 and sell it today you would earn a total of 114.00 from holding Jacquet Metal Service or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. RETAIL FOOD GROUP
Performance |
| Timeline |
| Jacquet Metal Service |
| RETAIL FOOD GROUP |
Jacquet Metal and RETAIL FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and RETAIL FOOD
The main advantage of trading using opposite Jacquet Metal and RETAIL FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, RETAIL FOOD 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 RETAIL FOOD will offset losses from the drop in RETAIL FOOD's long position.| Jacquet Metal vs. 24SEVENOFFICE GROUP AB | Jacquet Metal vs. CITY OFFICE REIT | Jacquet Metal vs. DAIDO METAL TD | Jacquet Metal vs. Casio Computer CoLtd |
| RETAIL FOOD vs. NTG Nordic Transport | RETAIL FOOD vs. FIREWEED METALS P | RETAIL FOOD vs. Columbia Sportswear | RETAIL FOOD vs. Jacquet Metal Service |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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