Correlation Between Jacquet Metal and National Health
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and National Health 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 National Health 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 National Health Investors, you can compare the effects of market volatilities on Jacquet Metal and National Health 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 National Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and National Health.
Diversification Opportunities for Jacquet Metal and National Health
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacquet and National is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and National Health Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Health Investors 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 National Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Health Investors has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and National Health go up and down completely randomly.
Pair Corralation between Jacquet Metal and National Health
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the National Health. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.05 times less risky than National Health. The stock trades about -0.04 of its potential returns per unit of risk. The National Health Investors is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,890 in National Health Investors on September 1, 2024 and sell it today you would earn a total of 1,360 from holding National Health Investors or generate 23.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. National Health Investors
Performance |
| Timeline |
| Jacquet Metal Service |
| National Health Investors |
Jacquet Metal and National Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and National Health
The main advantage of trading using opposite Jacquet Metal and National Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, National Health 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 National Health will offset losses from the drop in National Health's long position.| Jacquet Metal vs. BORR DRILLING NEW | Jacquet Metal vs. Carsales | Jacquet Metal vs. Gruppo Mutuionline SpA | Jacquet Metal vs. GungHo Online Entertainment |
| National Health vs. NTG Nordic Transport | National Health vs. Transport International Holdings | National Health vs. EVS Broadcast Equipment | National Health vs. COPLAND ROAD CAPITAL |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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