Correlation Between Jacquet Metal and Plug Power

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

Diversification Opportunities for Jacquet Metal and Plug Power

-0.46

Correlation Coefficient

Jacquet Metal  Plug Power

Very good diversification

The 3 months correlation between Jacquet and Plug is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power 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 Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Plug Power go up and down completely randomly.

Pair Corralation between Jacquet Metal and Plug Power

Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.48 times more return on investment than Plug Power. However, Jacquet Metal Service is 2.1 times less risky than Plug Power. It trades about 0.14 of its potential returns per unit of risk. Plug Power is currently generating about -0.12 per unit of risk. If you would invest  1,700  in Jacquet Metal Service on December 22, 2024 and sell it today you would earn a total of  370.00  from holding Jacquet Metal Service or generate 21.76% return on investment over 90 days.

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

Jacquet Metal Service  vs.  Plug Power

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 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jacquet Metal reported solid returns over the last few months and may actually be approaching a breakup point.

Plug Power

Risk-Adjusted Performance

Very Weak

Over the last 90 days Plug Power has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Jacquet Metal and Plug Power

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

The idea behind Jacquet Metal Service and Plug Power 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.