Correlation Between SPoT Coffee and Jaxon Mining
Can any of the company-specific risk be diversified away by investing in both SPoT Coffee and Jaxon 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 SPoT Coffee and Jaxon Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPoT Coffee and Jaxon Mining, you can compare the effects of market volatilities on SPoT Coffee and Jaxon 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 SPoT Coffee with a short position of Jaxon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPoT Coffee and Jaxon Mining.
Diversification Opportunities for SPoT Coffee and Jaxon Mining
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPoT and Jaxon is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding SPoT Coffee and Jaxon Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaxon Mining and SPoT 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 SPoT Coffee are associated (or correlated) with Jaxon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaxon Mining has no effect on the direction of SPoT Coffee i.e., SPoT Coffee and Jaxon Mining go up and down completely randomly.
Pair Corralation between SPoT Coffee and Jaxon Mining
If you would invest 1.00 in Jaxon Mining on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Jaxon Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPoT Coffee vs. Jaxon Mining
Performance |
| Timeline |
| SPoT Coffee |
| Jaxon Mining |
SPoT Coffee and Jaxon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPoT Coffee and Jaxon Mining
The main advantage of trading using opposite SPoT Coffee and Jaxon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPoT Coffee position performs unexpectedly, Jaxon 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 Jaxon Mining will offset losses from the drop in Jaxon Mining's long position.| SPoT Coffee vs. Medical Facilities | SPoT Coffee vs. Quipt Home Medical | SPoT Coffee vs. Labrador Iron Ore | SPoT Coffee vs. Profound Medical Corp |
| Jaxon Mining vs. Mako Mining Corp | Jaxon Mining vs. Getty Copper | Jaxon Mining vs. Metalero Mining Corp | Jaxon Mining vs. Electra Battery Materials |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |