Correlation Between Jacquet Metal and Kellogg
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Kellogg 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 Kellogg 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 Kellogg Company, you can compare the effects of market volatilities on Jacquet Metal and Kellogg 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 Kellogg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Kellogg.
Diversification Opportunities for Jacquet Metal and Kellogg
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and Kellogg is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Kellogg Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellogg Company 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 Kellogg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellogg Company has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Kellogg go up and down completely randomly.
Pair Corralation between Jacquet Metal and Kellogg
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Kellogg. In addition to that, Jacquet Metal is 3.82 times more volatile than Kellogg Company. It trades about -0.03 of its total potential returns per unit of risk. Kellogg Company is currently generating about 0.09 per unit of volatility. If you would invest 7,609 in Kellogg Company on October 29, 2024 and sell it today you would earn a total of 127.00 from holding Kellogg Company or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Kellogg Company
Performance |
| Timeline |
| Jacquet Metal Service |
| Kellogg Company |
Jacquet Metal and Kellogg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Kellogg
The main advantage of trading using opposite Jacquet Metal and Kellogg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Kellogg 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 Kellogg will offset losses from the drop in Kellogg's long position.| Jacquet Metal vs. Take Two Interactive Software | Jacquet Metal vs. DETALION GAMES SA | Jacquet Metal vs. GigaMedia | Jacquet Metal vs. Corsair Gaming |
| Kellogg vs. Granite Construction | Kellogg vs. GRUPO CARSO A1 | Kellogg vs. Hanison Construction Holdings | Kellogg vs. DAIRY FARM INTL |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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