Correlation Between Jacquet Metal and Sun Hung
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Sun Hung 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 Sun Hung 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 Sun Hung Kai, you can compare the effects of market volatilities on Jacquet Metal and Sun Hung 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 Sun Hung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Sun Hung.
Diversification Opportunities for Jacquet Metal and Sun Hung
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and Sun is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Sun Hung Kai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Hung Kai 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 Sun Hung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Hung Kai has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Sun Hung go up and down completely randomly.
Pair Corralation between Jacquet Metal and Sun Hung
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Sun Hung. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.73 times less risky than Sun Hung. The stock trades about -0.02 of its potential returns per unit of risk. The Sun Hung Kai is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 581.00 in Sun Hung Kai on September 4, 2024 and sell it today you would earn a total of 354.00 from holding Sun Hung Kai or generate 60.93% 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. Sun Hung Kai
Performance |
| Timeline |
| Jacquet Metal Service |
| Sun Hung Kai |
Jacquet Metal and Sun Hung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Sun Hung
The main advantage of trading using opposite Jacquet Metal and Sun Hung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Sun Hung 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 Sun Hung will offset losses from the drop in Sun Hung's long position.| Jacquet Metal vs. HF SINCLAIR P | Jacquet Metal vs. Enter Air SA | Jacquet Metal vs. FUYO GENERAL LEASE | Jacquet Metal vs. Autohome ADR |
| Sun Hung vs. Jacquet Metal Service | Sun Hung vs. Perseus Mining Limited | Sun Hung vs. MCEWEN MINING INC | Sun Hung vs. GRIFFIN MINING LTD |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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