Correlation Between ASPEN TECHINC and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both ASPEN TECHINC 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 ASPEN TECHINC and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASPEN TECHINC DL and Jacquet Metal Service, you can compare the effects of market volatilities on ASPEN TECHINC 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 ASPEN TECHINC with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASPEN TECHINC and Jacquet Metal.
Diversification Opportunities for ASPEN TECHINC and Jacquet Metal
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ASPEN and Jacquet is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding ASPEN TECHINC DL 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 ASPEN TECHINC 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 ASPEN TECHINC DL 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 ASPEN TECHINC i.e., ASPEN TECHINC and Jacquet Metal go up and down completely randomly.
Pair Corralation between ASPEN TECHINC and Jacquet Metal
Assuming the 90 days horizon ASPEN TECHINC is expected to generate 7.6 times less return on investment than Jacquet Metal. But when comparing it to its historical volatility, ASPEN TECHINC DL is 2.64 times less risky than Jacquet Metal. It trades about 0.08 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,642 in Jacquet Metal Service on October 11, 2024 and sell it today you would earn a total of 108.00 from holding Jacquet Metal Service or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASPEN TECHINC DL vs. Jacquet Metal Service
Performance |
| Timeline |
| ASPEN TECHINC DL |
| Jacquet Metal Service |
ASPEN TECHINC and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASPEN TECHINC and Jacquet Metal
The main advantage of trading using opposite ASPEN TECHINC and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASPEN TECHINC 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.| ASPEN TECHINC vs. Automatic Data Processing | ASPEN TECHINC vs. CODERE ONLINE LUX | ASPEN TECHINC vs. ZhongAn Online P | ASPEN TECHINC vs. SILVER BULLET DATA |
| Jacquet Metal vs. Acadia Healthcare | Jacquet Metal vs. ASPEN TECHINC DL | Jacquet Metal vs. Wenzhou Kangning Hospital | Jacquet Metal vs. Molina Healthcare |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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