Correlation Between International Battery and Jubilee Metals
Can any of the company-specific risk be diversified away by investing in both International Battery and Jubilee Metals 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 International Battery and Jubilee Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Battery Metals and Jubilee Metals Group, you can compare the effects of market volatilities on International Battery and Jubilee Metals 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 International Battery with a short position of Jubilee Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Battery and Jubilee Metals.
Diversification Opportunities for International Battery and Jubilee Metals
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between International and Jubilee is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding International Battery Metals and Jubilee Metals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jubilee Metals Group and International Battery 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 International Battery Metals are associated (or correlated) with Jubilee Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jubilee Metals Group has no effect on the direction of International Battery i.e., International Battery and Jubilee Metals go up and down completely randomly.
Pair Corralation between International Battery and Jubilee Metals
Assuming the 90 days horizon International Battery Metals is expected to under-perform the Jubilee Metals. In addition to that, International Battery is 2.32 times more volatile than Jubilee Metals Group. It trades about -0.14 of its total potential returns per unit of risk. Jubilee Metals Group is currently generating about 0.32 per unit of volatility. If you would invest 5.00 in Jubilee Metals Group on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Jubilee Metals Group or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Battery Metals vs. Jubilee Metals Group
Performance |
| Timeline |
| International Battery |
| Jubilee Metals Group |
International Battery and Jubilee Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Battery and Jubilee Metals
The main advantage of trading using opposite International Battery and Jubilee Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Battery position performs unexpectedly, Jubilee Metals 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 Jubilee Metals will offset losses from the drop in Jubilee Metals' long position.| International Battery vs. ATT Inc | International Battery vs. Merck Company | International Battery vs. Walt Disney | International Battery vs. Caterpillar |
| Jubilee Metals vs. ATT Inc | Jubilee Metals vs. Merck Company | Jubilee Metals vs. Walt Disney | Jubilee Metals vs. Caterpillar |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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