Correlation Between Jacquet Metal and Silver Mines
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Silver Mines 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 Silver Mines 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 Silver Mines Limited, you can compare the effects of market volatilities on Jacquet Metal and Silver Mines 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 Silver Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Silver Mines.
Diversification Opportunities for Jacquet Metal and Silver Mines
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and Silver is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Silver Mines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Mines Limited 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 Silver Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Mines Limited has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Silver Mines go up and down completely randomly.
Pair Corralation between Jacquet Metal and Silver Mines
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Silver Mines. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 2.27 times less risky than Silver Mines. The stock trades about -0.32 of its potential returns per unit of risk. The Silver Mines Limited is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 4.62 in Silver Mines Limited on October 26, 2024 and sell it today you would lose (0.39) from holding Silver Mines Limited or give up 8.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Jacquet Metal Service vs. Silver Mines Limited
Performance |
| Timeline |
| Jacquet Metal Service |
| Silver Mines Limited |
Jacquet Metal and Silver Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Silver Mines
The main advantage of trading using opposite Jacquet Metal and Silver Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Silver Mines 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 Silver Mines will offset losses from the drop in Silver Mines' long position.| Jacquet Metal vs. INFORMATION SVC GRP | Jacquet Metal vs. CN DATANG C | Jacquet Metal vs. NTT DATA | Jacquet Metal vs. Alliance Data Systems |
| Silver Mines vs. Pure Storage | Silver Mines vs. DATAGROUP SE | Silver Mines vs. Stewart Information Services | Silver Mines vs. CLEAN ENERGY FUELS |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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