Correlation Between Jacquet Metal and Martin Marietta
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Martin Marietta 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 Martin Marietta 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 Martin Marietta Materials, you can compare the effects of market volatilities on Jacquet Metal and Martin Marietta 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 Martin Marietta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Martin Marietta.
Diversification Opportunities for Jacquet Metal and Martin Marietta
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jacquet and Martin is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Martin Marietta Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Marietta Materials 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 Martin Marietta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Marietta Materials has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Martin Marietta go up and down completely randomly.
Pair Corralation between Jacquet Metal and Martin Marietta
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 1.15 times more return on investment than Martin Marietta. However, Jacquet Metal is 1.15 times more volatile than Martin Marietta Materials. It trades about 0.01 of its potential returns per unit of risk. Martin Marietta Materials is currently generating about -0.04 per unit of risk. If you would invest 1,770 in Jacquet Metal Service on December 2, 2024 and sell it today you would lose (14.00) from holding Jacquet Metal Service or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Martin Marietta Materials
Performance |
| Timeline |
| Jacquet Metal Service |
| Martin Marietta Materials |
Jacquet Metal and Martin Marietta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Martin Marietta
The main advantage of trading using opposite Jacquet Metal and Martin Marietta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Martin Marietta 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 Martin Marietta will offset losses from the drop in Martin Marietta's long position.| Jacquet Metal vs. KOBE STEEL LTD | Jacquet Metal vs. GAMES BOX SA | Jacquet Metal vs. Mount Gibson Iron | Jacquet Metal vs. QINGCI GAMES INC |
| Martin Marietta vs. Planet Fitness | Martin Marietta vs. Molina Healthcare | Martin Marietta vs. Siemens Healthineers AG | Martin Marietta vs. CARDINAL HEALTH |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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