Correlation Between Jacquet Metal and United States
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and United States 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 United States 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 United States Steel, you can compare the effects of market volatilities on Jacquet Metal and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and United States.
Diversification Opportunities for Jacquet Metal and United States
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and United is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and United States go up and down completely randomly.
Pair Corralation between Jacquet Metal and United States
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.82 times more return on investment than United States. However, Jacquet Metal Service is 1.21 times less risky than United States. It trades about 0.46 of its potential returns per unit of risk. United States Steel is currently generating about 0.05 per unit of risk. If you would invest 1,542 in Jacquet Metal Service on November 28, 2024 and sell it today you would earn a total of 238.00 from holding Jacquet Metal Service or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jacquet Metal Service vs. United States Steel
Performance |
| Timeline |
| Jacquet Metal Service |
| United States Steel |
Jacquet Metal and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and United States
The main advantage of trading using opposite Jacquet Metal and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Jacquet Metal vs. CAL MAINE FOODS | Jacquet Metal vs. COFCO Joycome Foods | Jacquet Metal vs. PLANT VEDA FOODS | Jacquet Metal vs. EBRO FOODS |
| United States vs. Norwegian Air Shuttle | United States vs. Ryanair Holdings plc | United States vs. CHINA SOUTHN AIR H | United States vs. LPKF Laser Electronics |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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