Correlation Between PICKN PAY and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both PICKN PAY 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 PICKN PAY and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICKN PAY STORES and Jacquet Metal Service, you can compare the effects of market volatilities on PICKN PAY 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 PICKN PAY with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Jacquet Metal.
Diversification Opportunities for PICKN PAY and Jacquet Metal
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PICKN and Jacquet is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES 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 PICKN PAY 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 PICKN PAY STORES 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 PICKN PAY i.e., PICKN PAY and Jacquet Metal go up and down completely randomly.
Pair Corralation between PICKN PAY and Jacquet Metal
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 1.48 times more return on investment than Jacquet Metal. However, PICKN PAY is 1.48 times more volatile than Jacquet Metal Service. It trades about 0.1 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.04 per unit of risk. If you would invest 118.00 in PICKN PAY STORES on November 2, 2024 and sell it today you would earn a total of 30.00 from holding PICKN PAY STORES or generate 25.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICKN PAY STORES vs. Jacquet Metal Service
Performance |
| Timeline |
| PICKN PAY STORES |
| Jacquet Metal Service |
PICKN PAY and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and Jacquet Metal
The main advantage of trading using opposite PICKN PAY and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY 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.| PICKN PAY vs. ADRIATIC METALS LS 013355 | PICKN PAY vs. Harmony Gold Mining | PICKN PAY vs. Coeur Mining | PICKN PAY vs. GRIFFIN MINING LTD |
| Jacquet Metal vs. JAPAN TOBACCO UNSPADR12 | Jacquet Metal vs. MCEWEN MINING INC | Jacquet Metal vs. ANGLO ASIAN MINING | Jacquet Metal vs. Japan Tobacco |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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