Correlation Between Jacquet Metal and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on Jacquet Metal and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Uber Technologies.
Diversification Opportunities for Jacquet Metal and Uber Technologies
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacquet and Uber is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Uber Technologies go up and down completely randomly.
Pair Corralation between Jacquet Metal and Uber Technologies
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.42 times more return on investment than Uber Technologies. However, Jacquet Metal Service is 2.39 times less risky than Uber Technologies. It trades about -0.14 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.09 per unit of risk. If you would invest 1,620 in Jacquet Metal Service on August 25, 2024 and sell it today you would lose (64.00) from holding Jacquet Metal Service or give up 3.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Uber Technologies
Performance |
| Timeline |
| Jacquet Metal Service |
| Uber Technologies |
Jacquet Metal and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Uber Technologies
The main advantage of trading using opposite Jacquet Metal and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Nippon Steel | Jacquet Metal vs. NIPPON STEEL SPADR |
| Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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