Correlation Between AFLAC and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both AFLAC and JLEN Environmental 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 AFLAC and JLEN Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFLAC Inc and JLEN Environmental Assets, you can compare the effects of market volatilities on AFLAC and JLEN Environmental 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 AFLAC with a short position of JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFLAC and JLEN Environmental.
Diversification Opportunities for AFLAC and JLEN Environmental
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AFLAC and JLEN is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding AFLAC Inc and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets and AFLAC 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 AFLAC Inc are associated (or correlated) with JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of AFLAC i.e., AFLAC and JLEN Environmental go up and down completely randomly.
Pair Corralation between AFLAC and JLEN Environmental
Assuming the 90 days trading horizon AFLAC Inc is expected to generate 0.94 times more return on investment than JLEN Environmental. However, AFLAC Inc is 1.07 times less risky than JLEN Environmental. It trades about -0.03 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.26 per unit of risk. If you would invest 10,712 in AFLAC Inc on September 12, 2024 and sell it today you would lose (299.00) from holding AFLAC Inc or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.31% |
| Values | Daily Returns |
AFLAC Inc vs. JLEN Environmental Assets
Performance |
| Timeline |
| AFLAC Inc |
| JLEN Environmental Assets |
AFLAC and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFLAC and JLEN Environmental
The main advantage of trading using opposite AFLAC and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFLAC position performs unexpectedly, JLEN Environmental 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 JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| AFLAC vs. Synchrony Financial | AFLAC vs. Erste Group Bank | AFLAC vs. Ecclesiastical Insurance Office | AFLAC vs. MT Bank Corp |
| JLEN Environmental vs. Samsung Electronics Co | JLEN Environmental vs. Samsung Electronics Co | JLEN Environmental vs. Hyundai Motor | JLEN Environmental vs. Toyota Motor Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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