Correlation Between JLEN Environmental and Chocoladefabriken
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Chocoladefabriken 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 Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli, you can compare the effects of market volatilities on JLEN Environmental and Chocoladefabriken 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 Chocoladefabriken. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Chocoladefabriken.
Diversification Opportunities for JLEN Environmental and Chocoladefabriken
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JLEN and Chocoladefabriken is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt 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 Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Chocoladefabriken go up and down completely randomly.
Pair Corralation between JLEN Environmental and Chocoladefabriken
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Chocoladefabriken. In addition to that, JLEN Environmental is 1.1 times more volatile than Chocoladefabriken Lindt Spruengli. It trades about -0.07 of its total potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about -0.02 per unit of volatility. If you would invest 10,976,300 in Chocoladefabriken Lindt Spruengli on August 31, 2024 and sell it today you would lose (976,300) from holding Chocoladefabriken Lindt Spruengli or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.94% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Chocoladefabriken Lindt Spruen
Performance |
| Timeline |
| JLEN Environmental Assets |
| Chocoladefabriken Lindt |
JLEN Environmental and Chocoladefabriken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Chocoladefabriken
The main advantage of trading using opposite JLEN Environmental and Chocoladefabriken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Chocoladefabriken 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 Chocoladefabriken will offset losses from the drop in Chocoladefabriken's long position.| JLEN Environmental vs. Playtech Plc | JLEN Environmental vs. Raytheon Technologies Corp | JLEN Environmental vs. Uber Technologies | JLEN Environmental vs. Worldwide Healthcare Trust |
| Chocoladefabriken vs. Neometals | Chocoladefabriken vs. Coor Service Management | Chocoladefabriken vs. Aeorema Communications Plc | Chocoladefabriken vs. JLEN Environmental Assets |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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