Correlation Between Jacquet Metal and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and ASURE SOFTWARE 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 ASURE SOFTWARE 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 ASURE SOFTWARE, you can compare the effects of market volatilities on Jacquet Metal and ASURE SOFTWARE 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 ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and ASURE SOFTWARE.
Diversification Opportunities for Jacquet Metal and ASURE SOFTWARE
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jacquet and ASURE is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE 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 ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Jacquet Metal and ASURE SOFTWARE
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 1.04 times more return on investment than ASURE SOFTWARE. However, Jacquet Metal is 1.04 times more volatile than ASURE SOFTWARE. It trades about 0.28 of its potential returns per unit of risk. ASURE SOFTWARE is currently generating about -0.15 per unit of risk. If you would invest 1,548 in Jacquet Metal Service on September 28, 2024 and sell it today you would earn a total of 152.00 from holding Jacquet Metal Service or generate 9.82% 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. ASURE SOFTWARE
Performance |
| Timeline |
| Jacquet Metal Service |
| ASURE SOFTWARE |
Jacquet Metal and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and ASURE SOFTWARE
The main advantage of trading using opposite Jacquet Metal and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, ASURE SOFTWARE 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 ASURE SOFTWARE will offset losses from the drop in ASURE SOFTWARE's long position.| Jacquet Metal vs. Nucor | Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Steel Dynamics |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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