Correlation Between SILVER BULLET and Jacquet Metal

Can any of the company-specific risk be diversified away by investing in both SILVER BULLET and Jacquet Metal 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 SILVER BULLET and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SILVER BULLET DATA and Jacquet Metal Service, you can compare the effects of market volatilities on SILVER BULLET and Jacquet Metal 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 SILVER BULLET with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SILVER BULLET and Jacquet Metal.

Diversification Opportunities for SILVER BULLET and Jacquet Metal

0.39

Correlation Coefficient

SILVER BULLET  Jacquet Metal

Weak diversification

The 3 months correlation between SILVER and Jacquet is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SILVER BULLET DATA and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service and SILVER BULLET 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 SILVER BULLET DATA are associated (or correlated) with Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of SILVER BULLET i.e., SILVER BULLET and Jacquet Metal go up and down completely randomly.

Pair Corralation between SILVER BULLET and Jacquet Metal

Assuming the 90 days horizon SILVER BULLET DATA is expected to generate 1.48 times more return on investment than Jacquet Metal. However, SILVER BULLET is 1.48 times more volatile than Jacquet Metal Service. It trades about 0.07 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.08 per unit of risk. If you would invest  60.00  in SILVER BULLET DATA on October 26, 2024 and sell it today you would earn a total of  6.00  from holding SILVER BULLET DATA or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SILVER BULLET DATA  vs.  Jacquet Metal Service

SILVER BULLET DATA

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SILVER BULLET DATA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SILVER BULLET may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Jacquet Metal Service

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jacquet Metal Service has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with SILVER BULLET and Jacquet Metal

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

The idea behind SILVER BULLET DATA and Jacquet Metal Service 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.