Correlation Between ETFS Coffee and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both ETFS Coffee and Jacquet Metal 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 ETFS Coffee and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETFS Coffee ETC and Jacquet Metal Service, you can compare the effects of market volatilities on ETFS Coffee and Jacquet Metal 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 ETFS Coffee with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFS Coffee and Jacquet Metal.
Diversification Opportunities for ETFS Coffee and Jacquet Metal
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ETFS and Jacquet is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding ETFS Coffee ETC and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service and ETFS Coffee 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 ETFS Coffee ETC are associated (or correlated) with Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of ETFS Coffee i.e., ETFS Coffee and Jacquet Metal go up and down completely randomly.
Pair Corralation between ETFS Coffee and Jacquet Metal
Assuming the 90 days trading horizon ETFS Coffee ETC is expected to generate 34.61 times more return on investment than Jacquet Metal. However, ETFS Coffee is 34.61 times more volatile than Jacquet Metal Service. It trades about 0.06 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.0 per unit of risk. If you would invest 93.00 in ETFS Coffee ETC on August 25, 2024 and sell it today you would earn a total of 4,408 from holding ETFS Coffee ETC or generate 4739.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.96% |
| Values | Daily Returns |
ETFS Coffee ETC vs. Jacquet Metal Service
Performance |
| Timeline |
| ETFS Coffee ETC |
| Jacquet Metal Service |
ETFS Coffee and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETFS Coffee and Jacquet Metal
The main advantage of trading using opposite ETFS Coffee and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETFS Coffee position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc |
| Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Nippon Steel | Jacquet Metal vs. NIPPON STEEL SPADR |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |