Correlation Between JLEN Environmental and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Nordea Bank 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 Nordea Bank 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 Nordea Bank Abp, you can compare the effects of market volatilities on JLEN Environmental and Nordea Bank 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 Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Nordea Bank.
Diversification Opportunities for JLEN Environmental and Nordea Bank
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JLEN and Nordea is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp 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 Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Nordea Bank go up and down completely randomly.
Pair Corralation between JLEN Environmental and Nordea Bank
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Nordea Bank. In addition to that, JLEN Environmental is 1.63 times more volatile than Nordea Bank Abp. It trades about -0.37 of its total potential returns per unit of risk. Nordea Bank Abp is currently generating about 0.36 per unit of volatility. If you would invest 12,280 in Nordea Bank Abp on November 5, 2024 and sell it today you would earn a total of 930.00 from holding Nordea Bank Abp or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Nordea Bank Abp
Performance |
| Timeline |
| JLEN Environmental Assets |
| Nordea Bank Abp |
JLEN Environmental and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Nordea Bank
The main advantage of trading using opposite JLEN Environmental and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Nordea Bank 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 Nordea Bank will offset losses from the drop in Nordea Bank's long position.| JLEN Environmental vs. Sartorius Stedim Biotech | JLEN Environmental vs. Allianz Technology Trust | JLEN Environmental vs. Ebro Foods | JLEN Environmental vs. Bell Food Group |
| Nordea Bank vs. UNIQA Insurance Group | Nordea Bank vs. Liontrust Asset Management | Nordea Bank vs. Software Circle plc | Nordea Bank vs. Zoom Video Communications |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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