Correlation Between Jacquet Metal and MONGOLIAN MINING

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

Diversification Opportunities for Jacquet Metal and MONGOLIAN MINING

0.11

Correlation Coefficient

Jacquet Metal  MONGOLIAN MINING

Average diversification

The 3 months correlation between Jacquet and MONGOLIAN is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and MONGOLIAN MINING CRPREGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MONGOLIAN MINING CRPREGS 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 MONGOLIAN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MONGOLIAN MINING CRPREGS has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and MONGOLIAN MINING go up and down completely randomly.

Pair Corralation between Jacquet Metal and MONGOLIAN MINING

Assuming the 90 days horizon Jacquet Metal is expected to generate 10.5 times less return on investment than MONGOLIAN MINING. But when comparing it to its historical volatility, Jacquet Metal Service is 2.73 times less risky than MONGOLIAN MINING. It trades about 0.02 of its potential returns per unit of risk. MONGOLIAN MINING CRPREGS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  24.00  in MONGOLIAN MINING CRPREGS on September 21, 2024 and sell it today you would earn a total of  67.00  from holding MONGOLIAN MINING CRPREGS or generate 279.17% return on investment over 90 days.

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

Jacquet Metal Service  vs.  MONGOLIAN MINING CRPREGS

Jacquet Metal Service

Risk-Adjusted Performance

9 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jacquet Metal may actually be approaching a critical reversion point that can send shares even higher in January 2025.

MONGOLIAN MINING CRPREGS

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MONGOLIAN MINING CRPREGS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MONGOLIAN MINING may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Jacquet Metal and MONGOLIAN MINING

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

The idea behind Jacquet Metal Service and MONGOLIAN MINING CRPREGS 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.