Correlation Between Jacquet Metal and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and BW OFFSHORE 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 BW OFFSHORE 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 BW OFFSHORE LTD, you can compare the effects of market volatilities on Jacquet Metal and BW OFFSHORE 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 BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and BW OFFSHORE.
Diversification Opportunities for Jacquet Metal and BW OFFSHORE
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and XY81 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD 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 BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and BW OFFSHORE go up and down completely randomly.
Pair Corralation between Jacquet Metal and BW OFFSHORE
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.52 times more return on investment than BW OFFSHORE. However, Jacquet Metal Service is 1.91 times less risky than BW OFFSHORE. It trades about 0.09 of its potential returns per unit of risk. BW OFFSHORE LTD is currently generating about 0.03 per unit of risk. If you would invest 1,546 in Jacquet Metal Service on September 23, 2024 and sell it today you would earn a total of 134.00 from holding Jacquet Metal Service or generate 8.67% 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. BW OFFSHORE LTD
Performance |
Timeline |
Jacquet Metal Service |
BW OFFSHORE LTD |
Jacquet Metal and BW OFFSHORE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jacquet Metal and BW OFFSHORE
The main advantage of trading using opposite Jacquet Metal and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, BW OFFSHORE 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 BW OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.Jacquet Metal vs. Nucor | Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Steel Dynamics |
BW OFFSHORE vs. NorAm Drilling AS | BW OFFSHORE vs. Suntory Beverage Food | BW OFFSHORE vs. Monster Beverage Corp | BW OFFSHORE vs. Pentair plc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |