Correlation Between Jacquet Metal and GoldMining

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

Diversification Opportunities for Jacquet Metal and GoldMining

0.0

Correlation Coefficient

Jacquet Metal  GoldMining

Pay attention - limited upside

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

Pair Corralation between Jacquet Metal and GoldMining

Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 0.98 times more return on investment than GoldMining. However, Jacquet Metal Service is 1.02 times less risky than GoldMining. It trades about 0.12 of its potential returns per unit of risk. GoldMining is currently generating about 0.05 per unit of risk. If you would invest  1,715  in Jacquet Metal Service on December 30, 2024 and sell it today you would earn a total of  305.00  from holding Jacquet Metal Service or generate 17.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	66.15%
Values	Daily Returns

Jacquet Metal Service  vs.  GoldMining

Jacquet Metal Service

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Jacquet Metal unveiled solid returns over the last few months and may actually be approaching a breakup point.

GoldMining

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GoldMining are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, GoldMining may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Jacquet Metal and GoldMining

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

The idea behind Jacquet Metal Service and GoldMining 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.