Correlation Between Jacquet Metal and Sony Group
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Sony Group 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 Sony Group 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 Sony Group Corp, you can compare the effects of market volatilities on Jacquet Metal and Sony Group 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 Sony Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Sony Group.
Diversification Opportunities for Jacquet Metal and Sony Group
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacquet and Sony is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Sony Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group Corp 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 Sony Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony Group Corp has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Sony Group go up and down completely randomly.
Pair Corralation between Jacquet Metal and Sony Group
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Sony Group. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 5.38 times less risky than Sony Group. The stock trades about -0.02 of its potential returns per unit of risk. The Sony Group Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 721.00 in Sony Group Corp on September 4, 2024 and sell it today you would earn a total of 1,172 from holding Sony Group Corp or generate 162.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Sony Group Corp
Performance |
| Timeline |
| Jacquet Metal Service |
| Sony Group Corp |
Jacquet Metal and Sony Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Sony Group
The main advantage of trading using opposite Jacquet Metal and Sony Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Sony Group 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 Sony Group will offset losses from the drop in Sony Group'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 |
| Sony Group vs. Jacquet Metal Service | Sony Group vs. Entravision Communications | Sony Group vs. Perseus Mining Limited | Sony Group vs. Computer And Technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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