Correlation Between Techtronic Industries and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Techtronic Industries 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 Techtronic Industries and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techtronic Industries and Jacquet Metal Service, you can compare the effects of market volatilities on Techtronic Industries 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 Techtronic Industries with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techtronic Industries and Jacquet Metal.
Diversification Opportunities for Techtronic Industries and Jacquet Metal
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Techtronic and Jacquet is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Techtronic Industries 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 Techtronic Industries 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 Techtronic Industries 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 Techtronic Industries i.e., Techtronic Industries and Jacquet Metal go up and down completely randomly.
Pair Corralation between Techtronic Industries and Jacquet Metal
Assuming the 90 days trading horizon Techtronic Industries is expected to generate 1.26 times more return on investment than Jacquet Metal. However, Techtronic Industries is 1.26 times more volatile than Jacquet Metal Service. It trades about 0.08 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.38 per unit of risk. If you would invest 1,229 in Techtronic Industries on October 23, 2024 and sell it today you would earn a total of 38.00 from holding Techtronic Industries or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techtronic Industries vs. Jacquet Metal Service
Performance |
| Timeline |
| Techtronic Industries |
| Jacquet Metal Service |
Techtronic Industries and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techtronic Industries and Jacquet Metal
The main advantage of trading using opposite Techtronic Industries and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techtronic Industries 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.| Techtronic Industries vs. SOUTHWEST AIRLINES | Techtronic Industries vs. SOLSTAD OFFSHORE NK | Techtronic Industries vs. Salesforce | Techtronic Industries vs. Solstad Offshore ASA |
| Jacquet Metal vs. Nucor | Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Steel Dynamics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| CEOs Directory Screen CEOs from public companies around the world |