Correlation Between JLEN Environmental and Ion Beam
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Ion Beam 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 Ion Beam 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 Ion Beam Applications, you can compare the effects of market volatilities on JLEN Environmental and Ion Beam 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 Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Ion Beam.
Diversification Opportunities for JLEN Environmental and Ion Beam
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JLEN and Ion is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications 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 Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Ion Beam go up and down completely randomly.
Pair Corralation between JLEN Environmental and Ion Beam
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Ion Beam. But the stock apears to be less risky and, when comparing its historical volatility, JLEN Environmental Assets is 1.79 times less risky than Ion Beam. The stock trades about -0.05 of its potential returns per unit of risk. The Ion Beam Applications is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,497 in Ion Beam Applications on September 2, 2024 and sell it today you would lose (101.00) from holding Ion Beam Applications or give up 6.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Ion Beam Applications
Performance |
| Timeline |
| JLEN Environmental Assets |
| Ion Beam Applications |
JLEN Environmental and Ion Beam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Ion Beam
The main advantage of trading using opposite JLEN Environmental and Ion Beam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Ion Beam 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 Ion Beam will offset losses from the drop in Ion Beam's long position.| JLEN Environmental vs. Samsung Electronics Co | JLEN Environmental vs. Samsung Electronics Co | JLEN Environmental vs. Toyota Motor Corp | JLEN Environmental vs. Reliance Industries Ltd |
| Ion Beam vs. Uniper SE | Ion Beam vs. Mulberry Group PLC | Ion Beam vs. London Security Plc | Ion Beam vs. Triad Group PLC |
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.
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