Correlation Between Jacquet Metal and Booking Holdings

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

Diversification Opportunities for Jacquet Metal and Booking Holdings

-0.16

Correlation Coefficient

Jacquet Metal  Booking Holdings

Good diversification

The 3 months correlation between Jacquet and Booking is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Booking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booking Holdings 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 Booking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booking Holdings has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Booking Holdings go up and down completely randomly.

Pair Corralation between Jacquet Metal and Booking Holdings

Assuming the 90 days trading horizon Jacquet Metal Service is expected to generate 1.42 times more return on investment than Booking Holdings. However, Jacquet Metal is 1.42 times more volatile than Booking Holdings. It trades about 0.22 of its potential returns per unit of risk. Booking Holdings is currently generating about -0.23 per unit of risk. If you would invest  1,800  in Jacquet Metal Service on December 24, 2024 and sell it today you would earn a total of  253.00  from holding Jacquet Metal Service or generate 14.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Jacquet Metal Service  vs.  Booking Holdings

Jacquet Metal Service

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 11 (%) 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.

Booking Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Booking Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Booking Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jacquet Metal and Booking Holdings

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

The idea behind Jacquet Metal Service and Booking Holdings 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.