Correlation Between Anglesey Mining and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both Anglesey Mining 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 Anglesey Mining and JLEN Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglesey Mining and JLEN Environmental Assets, you can compare the effects of market volatilities on Anglesey Mining 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 Anglesey Mining with a short position of JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglesey Mining and JLEN Environmental.
Diversification Opportunities for Anglesey Mining and JLEN Environmental
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anglesey and JLEN is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Anglesey Mining 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 Anglesey Mining 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 Anglesey Mining 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 Anglesey Mining i.e., Anglesey Mining and JLEN Environmental go up and down completely randomly.
Pair Corralation between Anglesey Mining and JLEN Environmental
Assuming the 90 days trading horizon Anglesey Mining is expected to under-perform the JLEN Environmental. In addition to that, Anglesey Mining is 1.5 times more volatile than JLEN Environmental Assets. It trades about -0.17 of its total potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.22 per unit of volatility. If you would invest 8,590 in JLEN Environmental Assets on September 17, 2024 and sell it today you would lose (1,290) from holding JLEN Environmental Assets or give up 15.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.73% |
| Values | Daily Returns |
Anglesey Mining vs. JLEN Environmental Assets
Performance |
| Timeline |
| Anglesey Mining |
| JLEN Environmental Assets |
Anglesey Mining and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglesey Mining and JLEN Environmental
The main advantage of trading using opposite Anglesey Mining and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglesey Mining 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.| Anglesey Mining vs. Givaudan SA | Anglesey Mining vs. Antofagasta PLC | Anglesey Mining vs. Ferrexpo PLC | Anglesey Mining vs. Atalaya Mining |
| JLEN Environmental vs. Bisichi Mining PLC | JLEN Environmental vs. Anglesey Mining | JLEN Environmental vs. Zoom Video Communications | JLEN Environmental vs. Blackrock World Mining |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |