Correlation Between Sun Hung and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Sun Hung 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 Sun Hung and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Hung Kai and Jacquet Metal Service, you can compare the effects of market volatilities on Sun Hung 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 Sun Hung with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Hung and Jacquet Metal.
Diversification Opportunities for Sun Hung and Jacquet Metal
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sun and Jacquet is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sun Hung Kai 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 Sun Hung 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 Sun Hung Kai 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 Sun Hung i.e., Sun Hung and Jacquet Metal go up and down completely randomly.
Pair Corralation between Sun Hung and Jacquet Metal
Assuming the 90 days horizon Sun Hung Kai is expected to generate 2.7 times more return on investment than Jacquet Metal. However, Sun Hung is 2.7 times more volatile than Jacquet Metal Service. It trades about 0.15 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.14 per unit of risk. If you would invest 642.00 in Sun Hung Kai on September 12, 2024 and sell it today you would earn a total of 293.00 from holding Sun Hung Kai or generate 45.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Sun Hung Kai vs. Jacquet Metal Service
Performance |
| Timeline |
| Sun Hung Kai |
| Jacquet Metal Service |
Sun Hung and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Hung and Jacquet Metal
The main advantage of trading using opposite Sun Hung and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Hung 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.| Sun Hung vs. ONWARD MEDICAL BV | Sun Hung vs. Japan Medical Dynamic | Sun Hung vs. DICKER DATA LTD | Sun Hung vs. Data3 Limited |
| Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. NIPPON STEEL SPADR | Jacquet Metal vs. Reliance Steel Aluminum | Jacquet Metal vs. Superior Plus Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |