Correlation Between EEducation Albert and JLT Mobile
Can any of the company-specific risk be diversified away by investing in both EEducation Albert and JLT Mobile 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 EEducation Albert and JLT Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eEducation Albert AB and JLT Mobile Computers, you can compare the effects of market volatilities on EEducation Albert and JLT Mobile 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 EEducation Albert with a short position of JLT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of EEducation Albert and JLT Mobile.
Diversification Opportunities for EEducation Albert and JLT Mobile
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EEducation and JLT is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding eEducation Albert AB and JLT Mobile Computers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLT Mobile Computers and EEducation Albert 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 eEducation Albert AB are associated (or correlated) with JLT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLT Mobile Computers has no effect on the direction of EEducation Albert i.e., EEducation Albert and JLT Mobile go up and down completely randomly.
Pair Corralation between EEducation Albert and JLT Mobile
Assuming the 90 days trading horizon eEducation Albert AB is expected to generate 0.83 times more return on investment than JLT Mobile. However, eEducation Albert AB is 1.2 times less risky than JLT Mobile. It trades about -0.09 of its potential returns per unit of risk. JLT Mobile Computers is currently generating about -0.15 per unit of risk. If you would invest 373.00 in eEducation Albert AB on September 1, 2024 and sell it today you would lose (14.00) from holding eEducation Albert AB or give up 3.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eEducation Albert AB vs. JLT Mobile Computers
Performance |
| Timeline |
| eEducation Albert |
| JLT Mobile Computers |
EEducation Albert and JLT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EEducation Albert and JLT Mobile
The main advantage of trading using opposite EEducation Albert and JLT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EEducation Albert position performs unexpectedly, JLT Mobile 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 JLT Mobile will offset losses from the drop in JLT Mobile's long position.| EEducation Albert vs. Greater Than AB | EEducation Albert vs. Cint Group AB | EEducation Albert vs. Acconeer AB | EEducation Albert vs. IAR Systems Group |
| JLT Mobile vs. Anoto Group AB | JLT Mobile vs. Avensia publ AB | JLT Mobile vs. Mekonomen AB | JLT Mobile vs. Embellence Group AB |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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