Correlation Between Optima Health and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Optima Health 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 Optima Health and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optima Health plc and Jacquet Metal Service, you can compare the effects of market volatilities on Optima Health 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 Optima Health with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optima Health and Jacquet Metal.
Diversification Opportunities for Optima Health and Jacquet Metal
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Optima and Jacquet is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Optima Health plc 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 Optima Health 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 Optima Health plc 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 Optima Health i.e., Optima Health and Jacquet Metal go up and down completely randomly.
Pair Corralation between Optima Health and Jacquet Metal
Assuming the 90 days trading horizon Optima Health plc is expected to under-perform the Jacquet Metal. But the stock apears to be less risky and, when comparing its historical volatility, Optima Health plc is 2.21 times less risky than Jacquet Metal. The stock trades about -0.11 of its potential returns per unit of risk. The Jacquet Metal Service is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Jacquet Metal Service on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Jacquet Metal Service or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optima Health plc vs. Jacquet Metal Service
Performance |
| Timeline |
| Optima Health plc |
| Jacquet Metal Service |
Optima Health and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optima Health and Jacquet Metal
The main advantage of trading using opposite Optima Health and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optima Health 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.| Optima Health vs. TBC Bank Group | Optima Health vs. Erste Group Bank | Optima Health vs. Ameriprise Financial | Optima Health vs. Sydbank |
| Jacquet Metal vs. Berkshire Hathaway | Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Chocoladefabriken Lindt Spruengli |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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