Correlation Between Triumph and Jacob Micro
Can any of the company-specific risk be diversified away by investing in both Triumph and Jacob Micro 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 Triumph and Jacob Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Group and Jacob Micro Cap, you can compare the effects of market volatilities on Triumph and Jacob Micro 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 Triumph with a short position of Jacob Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph and Jacob Micro.
Diversification Opportunities for Triumph and Jacob Micro
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Triumph and Jacob is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Group and Jacob Micro Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Micro Cap and Triumph 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 Triumph Group are associated (or correlated) with Jacob Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Micro Cap has no effect on the direction of Triumph i.e., Triumph and Jacob Micro go up and down completely randomly.
Pair Corralation between Triumph and Jacob Micro
Considering the 90-day investment horizon Triumph is expected to generate 3.73 times less return on investment than Jacob Micro. But when comparing it to its historical volatility, Triumph Group is 3.74 times less risky than Jacob Micro. It trades about 0.04 of its potential returns per unit of risk. Jacob Micro Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,113 in Jacob Micro Cap on March 28, 2025 and sell it today you would earn a total of 74.00 from holding Jacob Micro Cap or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triumph Group vs. Jacob Micro Cap
Performance |
| Timeline |
| Triumph Group |
| Jacob Micro Cap |
Triumph and Jacob Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph and Jacob Micro
The main advantage of trading using opposite Triumph and Jacob Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph position performs unexpectedly, Jacob Micro 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 Micro will offset losses from the drop in Jacob Micro's long position.| Triumph vs. Mercury Systems | Triumph vs. Curtiss Wright | Triumph vs. Hexcel | Triumph vs. Ducommun Incorporated |
| Jacob Micro vs. Small Pany Growth | Jacob Micro vs. Jacob Internet Fund | Jacob Micro vs. Jacob Small Cap | Jacob Micro vs. Amer Beacon Ark |
Check out your portfolio center.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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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