Correlation Between Jacquet Metal and Shore Capital

Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Shore Capital 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 Shore Capital 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 Shore Capital Group, you can compare the effects of market volatilities on Jacquet Metal and Shore Capital 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 Shore Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Shore Capital.

Diversification Opportunities for Jacquet Metal and Shore Capital

0.0

Correlation Coefficient

Jacquet Metal  Shore Capital

Pay attention - limited upside

The 3 months correlation between Jacquet and Shore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Shore Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shore Capital Group 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 Shore Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shore Capital Group has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Shore Capital go up and down completely randomly.

Pair Corralation between Jacquet Metal and Shore Capital

If you would invest  1,604  in Jacquet Metal Service on September 26, 2024 and sell it today you would earn a total of  101.00  from holding Jacquet Metal Service or generate 6.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jacquet Metal Service  vs.  Shore Capital Group

Jacquet Metal Service

Risk-Adjusted Performance

5 of 100

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.

Shore Capital Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shore Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Shore Capital is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Jacquet Metal and Shore Capital

The main advantage of trading using opposite Jacquet Metal and Shore Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Shore Capital 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 Shore Capital will offset losses from the drop in Shore Capital's long position.

The idea behind Jacquet Metal Service and Shore Capital Group 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.