Correlation Between PureCycle Technologies and Jaguar Mining
Can any of the company-specific risk be diversified away by investing in both PureCycle Technologies and Jaguar Mining 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 PureCycle Technologies and Jaguar Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PureCycle Technologies and Jaguar Mining, you can compare the effects of market volatilities on PureCycle Technologies and Jaguar Mining 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 PureCycle Technologies with a short position of Jaguar Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureCycle Technologies and Jaguar Mining.
Diversification Opportunities for PureCycle Technologies and Jaguar Mining
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PureCycle and Jaguar is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding PureCycle Technologies and Jaguar Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Mining and PureCycle Technologies 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 PureCycle Technologies are associated (or correlated) with Jaguar Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Mining has no effect on the direction of PureCycle Technologies i.e., PureCycle Technologies and Jaguar Mining go up and down completely randomly.
Pair Corralation between PureCycle Technologies and Jaguar Mining
Assuming the 90 days horizon PureCycle Technologies is expected to generate 23.05 times more return on investment than Jaguar Mining. However, PureCycle Technologies is 23.05 times more volatile than Jaguar Mining. It trades about 0.1 of its potential returns per unit of risk. Jaguar Mining is currently generating about 0.09 per unit of risk. If you would invest 125.00 in PureCycle Technologies on September 1, 2024 and sell it today you would earn a total of 365.00 from holding PureCycle Technologies or generate 292.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.03% |
| Values | Daily Returns |
PureCycle Technologies vs. Jaguar Mining
Performance |
| Timeline |
| PureCycle Technologies |
| Jaguar Mining |
PureCycle Technologies and Jaguar Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PureCycle Technologies and Jaguar Mining
The main advantage of trading using opposite PureCycle Technologies and Jaguar Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PureCycle Technologies position performs unexpectedly, Jaguar Mining 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 Jaguar Mining will offset losses from the drop in Jaguar Mining's long position.| PureCycle Technologies vs. Origin Materials Warrant | PureCycle Technologies vs. Purecycle Technologies Holdings | PureCycle Technologies vs. Blade Air Mobility |
| Jaguar Mining vs. South32 Limited | Jaguar Mining vs. NioCorp Developments Ltd | Jaguar Mining vs. HUMANA INC | Jaguar Mining vs. SCOR PK |
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 CEOs Directory module to screen CEOs from public companies around the world.
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