Correlation Between JLEN Environmental and G5 Entertainment
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and G5 Entertainment 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 G5 Entertainment 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 G5 Entertainment AB, you can compare the effects of market volatilities on JLEN Environmental and G5 Entertainment 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 G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and G5 Entertainment.
Diversification Opportunities for JLEN Environmental and G5 Entertainment
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JLEN and 0QUS is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and G5 Entertainment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment 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 G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and G5 Entertainment go up and down completely randomly.
Pair Corralation between JLEN Environmental and G5 Entertainment
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the G5 Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, JLEN Environmental Assets is 1.57 times less risky than G5 Entertainment. The stock trades about -0.24 of its potential returns per unit of risk. The G5 Entertainment AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,490 in G5 Entertainment AB on September 2, 2024 and sell it today you would earn a total of 630.00 from holding G5 Entertainment AB or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
JLEN Environmental Assets vs. G5 Entertainment AB
Performance |
| Timeline |
| JLEN Environmental Assets |
| G5 Entertainment |
JLEN Environmental and G5 Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and G5 Entertainment
The main advantage of trading using opposite JLEN Environmental and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, G5 Entertainment 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 G5 Entertainment will offset losses from the drop in G5 Entertainment'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 |
| G5 Entertainment vs. Uniper SE | G5 Entertainment vs. Mulberry Group PLC | G5 Entertainment vs. London Security Plc | G5 Entertainment 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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