Correlation Between JLEN Environmental and Amazon
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Amazon 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 Amazon 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 Amazon Inc, you can compare the effects of market volatilities on JLEN Environmental and Amazon 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 Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Amazon.
Diversification Opportunities for JLEN Environmental and Amazon
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JLEN and Amazon is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc 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 Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Amazon go up and down completely randomly.
Pair Corralation between JLEN Environmental and Amazon
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Amazon. In addition to that, JLEN Environmental is 1.55 times more volatile than Amazon Inc. It trades about -0.19 of its total potential returns per unit of risk. Amazon Inc is currently generating about -0.15 per unit of volatility. If you would invest 23,000 in Amazon Inc on October 12, 2024 and sell it today you would lose (750.00) from holding Amazon Inc or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Amazon Inc
Performance |
| Timeline |
| JLEN Environmental Assets |
| Amazon Inc |
JLEN Environmental and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Amazon
The main advantage of trading using opposite JLEN Environmental and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.| JLEN Environmental vs. BYD Co | JLEN Environmental vs. Volkswagen AG Non Vtg | JLEN Environmental vs. United Parcel Service | JLEN Environmental vs. Jardine Matheson Holdings |
| Amazon vs. Deltex Medical Group | Amazon vs. Cognizant Technology Solutions | Amazon vs. Cizzle Biotechnology Holdings | Amazon 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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