Correlation Between Jacquet Metal and US Foods
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and US Foods 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 US Foods 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 US Foods Holding, you can compare the effects of market volatilities on Jacquet Metal and US Foods 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 US Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and US Foods.
Diversification Opportunities for Jacquet Metal and US Foods
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jacquet and UFH is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and US Foods Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Foods Holding 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 US Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Foods Holding has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and US Foods go up and down completely randomly.
Pair Corralation between Jacquet Metal and US Foods
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the US Foods. In addition to that, Jacquet Metal is 1.14 times more volatile than US Foods Holding. It trades about -0.01 of its total potential returns per unit of risk. US Foods Holding is currently generating about 0.11 per unit of volatility. If you would invest 3,860 in US Foods Holding on August 31, 2024 and sell it today you would earn a total of 2,940 from holding US Foods Holding or generate 76.17% 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. US Foods Holding
Performance |
| Timeline |
| Jacquet Metal Service |
| US Foods Holding |
Jacquet Metal and US Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and US Foods
The main advantage of trading using opposite Jacquet Metal and US Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, US Foods 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 US Foods will offset losses from the drop in US Foods' long position.| Jacquet Metal vs. Tsingtao Brewery | Jacquet Metal vs. BJs Restaurants | Jacquet Metal vs. GungHo Online Entertainment | Jacquet Metal vs. Thai Beverage Public |
| US Foods vs. DICKER DATA LTD | US Foods vs. Lion One Metals | US Foods vs. MICRONIC MYDATA | US Foods vs. Jacquet Metal Service |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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