Correlation Between Jacquet Metal and Universal Display
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Universal Display 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 Universal Display 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 Universal Display, you can compare the effects of market volatilities on Jacquet Metal and Universal Display 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 Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Universal Display.
Diversification Opportunities for Jacquet Metal and Universal Display
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and Universal is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display 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 Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Universal Display go up and down completely randomly.
Pair Corralation between Jacquet Metal and Universal Display
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Universal Display. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.55 times less risky than Universal Display. The stock trades about -0.02 of its potential returns per unit of risk. The Universal Display is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 15,649 in Universal Display on November 1, 2024 and sell it today you would lose (1,119) from holding Universal Display or give up 7.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Universal Display
Performance |
| Timeline |
| Jacquet Metal Service |
| Universal Display |
Jacquet Metal and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Universal Display
The main advantage of trading using opposite Jacquet Metal and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| Jacquet Metal vs. ATRESMEDIA | Jacquet Metal vs. SQUIRREL MEDIA SA | Jacquet Metal vs. JIAHUA STORES | Jacquet Metal vs. TOWNSQUARE MEDIA INC |
| Universal Display vs. PARKEN Sport Entertainment | Universal Display vs. CNVISION MEDIA | Universal Display vs. Apollo Investment Corp | Universal Display vs. PennantPark Investment |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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