Correlation Between Jacquet Metal and Innelec Multimedia

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Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Innelec Multimedia 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 Innelec Multimedia 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 Innelec Multimedia, you can compare the effects of market volatilities on Jacquet Metal and Innelec Multimedia 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 Innelec Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Innelec Multimedia.

Diversification Opportunities for Jacquet Metal and Innelec Multimedia

JacquetInnelecDiversified AwayJacquetInnelecDiversified Away100%
0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Jacquet and Innelec is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Innelec Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innelec Multimedia 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 Innelec Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innelec Multimedia has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Innelec Multimedia go up and down completely randomly.

Pair Corralation between Jacquet Metal and Innelec Multimedia

Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.83 times more return on investment than Innelec Multimedia. However, Jacquet Metal Service is 1.21 times less risky than Innelec Multimedia. It trades about 0.57 of its potential returns per unit of risk. Innelec Multimedia is currently generating about 0.22 per unit of risk. If you would invest  1,572  in Jacquet Metal Service on November 25, 2024 and sell it today you would earn a total of  222.00  from holding Jacquet Metal Service or generate 14.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Jacquet Metal Service  vs.  Innelec Multimedia

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -1001020
JavaScript chart by amCharts 3.21.15JCQ ALINN
       Timeline  
Jacquet Metal Service 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Jacquet Metal sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1515.51616.51717.518
Innelec Multimedia 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Innelec Multimedia are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Innelec Multimedia reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.62.833.23.43.63.844.2

Jacquet Metal and Innelec Multimedia Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.82-3.61-2.4-1.190.02021.262.563.865.176.47 0.050.100.15
JavaScript chart by amCharts 3.21.15JCQ ALINN
       Returns  

Pair Trading with Jacquet Metal and Innelec Multimedia

The main advantage of trading using opposite Jacquet Metal and Innelec Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Innelec Multimedia 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 Innelec Multimedia will offset losses from the drop in Innelec Multimedia's long position.
The idea behind Jacquet Metal Service and Innelec Multimedia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 CEOs Directory module to screen CEOs from public companies around the world.

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