Correlation Between Argo Group and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both Argo Group 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 Argo Group and JLEN Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Group Limited and JLEN Environmental Assets, you can compare the effects of market volatilities on Argo Group 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 Argo Group with a short position of JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Group and JLEN Environmental.
Diversification Opportunities for Argo Group and JLEN Environmental
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argo and JLEN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Argo Group Limited 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 Argo Group 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 Argo Group Limited 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 Argo Group i.e., Argo Group and JLEN Environmental go up and down completely randomly.
Pair Corralation between Argo Group and JLEN Environmental
Assuming the 90 days trading horizon Argo Group Limited is expected to generate 3.24 times more return on investment than JLEN Environmental. However, Argo Group is 3.24 times more volatile than JLEN Environmental Assets. It trades about 0.0 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.05 per unit of risk. If you would invest 750.00 in Argo Group Limited on November 28, 2024 and sell it today you would lose (225.00) from holding Argo Group Limited or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Argo Group Limited vs. JLEN Environmental Assets
Performance |
| Timeline |
| Argo Group Limited |
| JLEN Environmental Assets |
Argo Group and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Group and JLEN Environmental
The main advantage of trading using opposite Argo Group and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Group 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.| Argo Group vs. Eco Animal Health | Argo Group vs. Induction Healthcare Group | Argo Group vs. Optima Health plc | Argo Group vs. British American Tobacco |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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