Correlation Between Jubilee Metals and European Metals
Can any of the company-specific risk be diversified away by investing in both Jubilee Metals and European 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 Jubilee Metals and European Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jubilee Metals Group and European Metals Holdings, you can compare the effects of market volatilities on Jubilee Metals and European 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 Jubilee Metals with a short position of European Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilee Metals and European Metals.
Diversification Opportunities for Jubilee Metals and European Metals
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jubilee and European is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jubilee Metals Group and European Metals Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on European Metals Holdings and Jubilee Metals 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 Jubilee Metals Group are associated (or correlated) with European Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of European Metals Holdings has no effect on the direction of Jubilee Metals i.e., Jubilee Metals and European Metals go up and down completely randomly.
Pair Corralation between Jubilee Metals and European Metals
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 Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Jubilee Metals Group vs. European Metals Holdings
Performance |
| Timeline |
| Jubilee Metals Group |
| European Metals Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jubilee Metals and European Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilee Metals and European Metals
The main advantage of trading using opposite Jubilee Metals and European Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilee Metals position performs unexpectedly, European 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 European Metals will offset losses from the drop in European Metals' long position.| Jubilee Metals vs. ATT Inc | Jubilee Metals vs. Merck Company | Jubilee Metals vs. Walt Disney | Jubilee Metals vs. Caterpillar |
| European Metals vs. International Battery Metals | European Metals vs. Savannah Resources Plc | European Metals vs. Tartisan Nickel Corp | European Metals vs. Critical Elements |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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