Correlation Between Jacquet Metal and VIVA WINE
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and VIVA WINE 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 VIVA WINE 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 VIVA WINE GROUP, you can compare the effects of market volatilities on Jacquet Metal and VIVA WINE 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 VIVA WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and VIVA WINE.
Diversification Opportunities for Jacquet Metal and VIVA WINE
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and VIVA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and VIVA WINE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVA WINE 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 VIVA WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVA WINE GROUP has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and VIVA WINE go up and down completely randomly.
Pair Corralation between Jacquet Metal and VIVA WINE
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.88 times more return on investment than VIVA WINE. However, Jacquet Metal Service is 1.14 times less risky than VIVA WINE. It trades about 0.29 of its potential returns per unit of risk. VIVA WINE GROUP is currently generating about -0.14 per unit of risk. If you would invest 1,518 in Jacquet Metal Service on September 14, 2024 and sell it today you would earn a total of 126.00 from holding Jacquet Metal Service or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. VIVA WINE GROUP
Performance |
| Timeline |
| Jacquet Metal Service |
| VIVA WINE GROUP |
Jacquet Metal and VIVA WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and VIVA WINE
The main advantage of trading using opposite Jacquet Metal and VIVA WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, VIVA WINE 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 VIVA WINE will offset losses from the drop in VIVA WINE's long position.| Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. NIPPON STEEL SPADR | Jacquet Metal vs. Reliance Steel Aluminum | Jacquet Metal vs. Superior Plus Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |