Correlation Between JLEN Environmental and Zoom Video
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Zoom Video 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 JLEN Environmental and Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLEN Environmental Assets and Zoom Video Communications, you can compare the effects of market volatilities on JLEN Environmental and Zoom Video 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 JLEN Environmental with a short position of Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Zoom Video.
Diversification Opportunities for JLEN Environmental and Zoom Video
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JLEN and Zoom is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications and JLEN Environmental 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 JLEN Environmental Assets are associated (or correlated) with Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Zoom Video go up and down completely randomly.
Pair Corralation between JLEN Environmental and Zoom Video
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Zoom Video. But the stock apears to be less risky and, when comparing its historical volatility, JLEN Environmental Assets is 1.23 times less risky than Zoom Video. The stock trades about -0.27 of its potential returns per unit of risk. The Zoom Video Communications is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 7,395 in Zoom Video Communications on August 27, 2024 and sell it today you would earn a total of 1,558 from holding Zoom Video Communications or generate 21.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Zoom Video Communications
Performance |
| Timeline |
| JLEN Environmental Assets |
| Zoom Video Communications |
JLEN Environmental and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Zoom Video
The main advantage of trading using opposite JLEN Environmental and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |