Correlation Between Jacquet Metal and Global Net
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jacquet Metal Service vs. Global Net Lease
Performance |
Timeline |
Jacquet Metal Service |
Global Net Lease |
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.Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Samsung Electronics Co | Jacquet Metal vs. Hyundai Motor | Jacquet Metal vs. Toyota Motor Corp |
Global Net vs. Samsung Electronics Co | Global Net vs. Samsung Electronics Co | Global Net vs. Hyundai Motor | Global Net vs. Toyota Motor 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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