Correlation Between Jacquet Metal and Dekuple

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

Diversification Opportunities for Jacquet Metal and Dekuple

-0.43

Correlation Coefficient

Jacquet Metal  Dekuple

Very good diversification

The 3 months correlation between Jacquet and Dekuple is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Dekuple in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dekuple 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 Dekuple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dekuple has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Dekuple go up and down completely randomly.

Pair Corralation between Jacquet Metal and Dekuple

Assuming the 90 days trading horizon Jacquet Metal is expected to generate 3.9 times less return on investment than Dekuple. But when comparing it to its historical volatility, Jacquet Metal Service is 1.23 times less risky than Dekuple. It trades about 0.01 of its potential returns per unit of risk. Dekuple is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,847  in Dekuple on September 28, 2024 and sell it today you would earn a total of  703.00  from holding Dekuple or generate 24.69% 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.  Dekuple

Jacquet Metal Service

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Jacquet Metal may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Dekuple

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dekuple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Dekuple is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Jacquet Metal and Dekuple

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

The idea behind Jacquet Metal Service and Dekuple 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.