Correlation Between Jacquet Metal and Exxon Mobil
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Exxon Mobil 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 Exxon Mobil 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 Exxon Mobil, you can compare the effects of market volatilities on Jacquet Metal and Exxon Mobil 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 Exxon Mobil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Exxon Mobil.
Diversification Opportunities for Jacquet Metal and Exxon Mobil
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacquet and Exxon is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Exxon Mobil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil 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 Exxon Mobil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxon Mobil has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Exxon Mobil go up and down completely randomly.
Pair Corralation between Jacquet Metal and Exxon Mobil
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Exxon Mobil. In addition to that, Jacquet Metal is 1.28 times more volatile than Exxon Mobil. It trades about -0.08 of its total potential returns per unit of risk. Exxon Mobil is currently generating about 0.02 per unit of volatility. If you would invest 10,476 in Exxon Mobil on November 2, 2024 and sell it today you would earn a total of 54.00 from holding Exxon Mobil or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Exxon Mobil
Performance |
| Timeline |
| Jacquet Metal Service |
| Exxon Mobil |
Jacquet Metal and Exxon Mobil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Exxon Mobil
The main advantage of trading using opposite Jacquet Metal and Exxon Mobil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Exxon Mobil 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 Exxon Mobil will offset losses from the drop in Exxon Mobil's long position.| Jacquet Metal vs. JAPAN TOBACCO UNSPADR12 | Jacquet Metal vs. MCEWEN MINING INC | Jacquet Metal vs. ANGLO ASIAN MINING | Jacquet Metal vs. Japan Tobacco |
| Exxon Mobil vs. EVS Broadcast Equipment | Exxon Mobil vs. Transport International Holdings | Exxon Mobil vs. CALTAGIRONE EDITORE | Exxon Mobil vs. Gold Road Resources |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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