Correlation Between Jacquet Metal and X FAB
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and X FAB 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 X FAB 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 X FAB Silicon Foundries, you can compare the effects of market volatilities on Jacquet Metal and X FAB 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 X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and X FAB.
Diversification Opportunities for Jacquet Metal and X FAB
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and XFB is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon 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 X FAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and X FAB go up and down completely randomly.
Pair Corralation between Jacquet Metal and X FAB
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.59 times more return on investment than X FAB. However, Jacquet Metal Service is 1.69 times less risky than X FAB. It trades about -0.02 of its potential returns per unit of risk. X FAB Silicon Foundries is currently generating about -0.11 per unit of risk. If you would invest 1,799 in Jacquet Metal Service on September 4, 2024 and sell it today you would lose (209.00) from holding Jacquet Metal Service or give up 11.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Jacquet Metal Service vs. X FAB Silicon Foundries
Performance |
| Timeline |
| Jacquet Metal Service |
| X FAB Silicon |
Jacquet Metal and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and X FAB
The main advantage of trading using opposite Jacquet Metal and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, X FAB 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 X FAB will offset losses from the drop in X FAB's long position.| Jacquet Metal vs. HF SINCLAIR P | Jacquet Metal vs. Enter Air SA | Jacquet Metal vs. FUYO GENERAL LEASE | Jacquet Metal vs. Autohome ADR |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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