Correlation Between Jacquet Metal and Sabra Health
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Sabra Health 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 Sabra Health 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 Sabra Health Care, you can compare the effects of market volatilities on Jacquet Metal and Sabra Health 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 Sabra Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Sabra Health.
Diversification Opportunities for Jacquet Metal and Sabra Health
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jacquet and Sabra is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Sabra Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Health Care 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 Sabra Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Health Care has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Sabra Health go up and down completely randomly.
Pair Corralation between Jacquet Metal and Sabra Health
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Sabra Health. In addition to that, Jacquet Metal is 1.08 times more volatile than Sabra Health Care. It trades about -0.04 of its total potential returns per unit of risk. Sabra Health Care is currently generating about 0.17 per unit of volatility. If you would invest 1,288 in Sabra Health Care on September 1, 2024 and sell it today you would earn a total of 493.00 from holding Sabra Health Care or generate 38.28% 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. Sabra Health Care
Performance |
| Timeline |
| Jacquet Metal Service |
| Sabra Health Care |
Jacquet Metal and Sabra Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Sabra Health
The main advantage of trading using opposite Jacquet Metal and Sabra Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Sabra Health 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 Sabra Health will offset losses from the drop in Sabra Health's long position.| Jacquet Metal vs. BORR DRILLING NEW | Jacquet Metal vs. Carsales | Jacquet Metal vs. Gruppo Mutuionline SpA | Jacquet Metal vs. GungHo Online Entertainment |
| Sabra Health vs. Hanison Construction Holdings | Sabra Health vs. UNITED UTILITIES GR | Sabra Health vs. NORTHEAST UTILITIES | Sabra Health vs. Hitachi Construction Machinery |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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