Correlation Between Jacob Asset and Jacob Small

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

By analyzing existing cross correlation between Jacob Asset Management and Jacob Small Cap, you can compare the effects of market volatilities on Jacob Asset and Jacob Small 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 Jacob Asset with a short position of Jacob Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Asset and Jacob Small.

Diversification Opportunities for Jacob Asset and Jacob Small

0.0

Correlation Coefficient

Jacob Asset  Jacob Small

Pay attention - limited upside

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

Pair Corralation between Jacob Asset and Jacob Small

If you would invest (100.00) in Jacob Asset Management on December 25, 2024 and sell it today you would earn a total of  100.00  from holding Jacob Asset Management or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jacob Asset Management  vs.  Jacob Small Cap

Jacob Asset Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jacob Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Jacob Asset is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Jacob Small Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jacob Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Jacob Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jacob Asset and Jacob Small

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

The idea behind Jacob Asset Management and Jacob Small Cap 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.