Correlation Between Jacquet Metal and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and BW OFFSHORE 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 BW OFFSHORE 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 BW OFFSHORE LTD, you can compare the effects of market volatilities on Jacquet Metal and BW OFFSHORE 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 BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and BW OFFSHORE.
Diversification Opportunities for Jacquet Metal and BW OFFSHORE
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jacquet and XY81 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD 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 BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and BW OFFSHORE go up and down completely randomly.
Pair Corralation between Jacquet Metal and BW OFFSHORE
Assuming the 90 days horizon Jacquet Metal is expected to generate 2.36 times less return on investment than BW OFFSHORE. But when comparing it to its historical volatility, Jacquet Metal Service is 1.25 times less risky than BW OFFSHORE. It trades about 0.18 of its potential returns per unit of risk. BW OFFSHORE LTD is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 231.00 in BW OFFSHORE LTD on October 12, 2024 and sell it today you would earn a total of 30.00 from holding BW OFFSHORE LTD or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. BW OFFSHORE LTD
Performance |
| Timeline |
| Jacquet Metal Service |
| BW OFFSHORE LTD |
Jacquet Metal and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and BW OFFSHORE
The main advantage of trading using opposite Jacquet Metal and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, BW OFFSHORE 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 BW OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.| Jacquet Metal vs. Taiwan Semiconductor Manufacturing | Jacquet Metal vs. Nordic Semiconductor ASA | Jacquet Metal vs. Nomad Foods | Jacquet Metal vs. NAKED WINES PLC |
| BW OFFSHORE vs. CarsalesCom | BW OFFSHORE vs. SANOK RUBBER ZY | BW OFFSHORE vs. Mitsubishi Materials | BW OFFSHORE vs. Vulcan Materials |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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