Correlation Between Jacquet Metal and Global Net

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Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Global Net 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 Jacquet Metal and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and Global Net Lease, you can compare the effects of market volatilities on Jacquet Metal and Global Net 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 Jacquet Metal with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Global Net.

Diversification Opportunities for Jacquet Metal and Global Net

-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between Jacquet and Global is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease and Jacquet Metal 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 Jacquet Metal Service are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Global Net go up and down completely randomly.

Pair Corralation between Jacquet Metal and Global Net

Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 1.05 times more return on investment than Global Net. However, Jacquet Metal is 1.05 times more volatile than Global Net Lease. It trades about 0.07 of its potential returns per unit of risk. Global Net Lease is currently generating about -0.15 per unit of risk. If you would invest  1,477  in Jacquet Metal Service on September 5, 2024 and sell it today you would earn a total of  93.00  from holding Jacquet Metal Service or generate 6.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Jacquet Metal Service  vs.  Global Net Lease

 Performance 
       Timeline  
Jacquet Metal Service 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Jacquet Metal may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Global Net Lease 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Global Net Lease has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Jacquet Metal and Global Net Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jacquet Metal and Global Net

The main advantage of trading using opposite Jacquet Metal and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.
The idea behind Jacquet Metal Service and Global Net Lease pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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