Correlation Between JLEN Environmental and Catena Media
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Catena Media 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 Catena Media 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 Catena Media PLC, you can compare the effects of market volatilities on JLEN Environmental and Catena Media 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 Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Catena Media.
Diversification Opportunities for JLEN Environmental and Catena Media
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JLEN and Catena is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Catena Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catena Media PLC 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 Catena Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catena Media PLC has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Catena Media go up and down completely randomly.
Pair Corralation between JLEN Environmental and Catena Media
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to generate 0.47 times more return on investment than Catena Media. However, JLEN Environmental Assets is 2.14 times less risky than Catena Media. It trades about -0.02 of its potential returns per unit of risk. Catena Media PLC is currently generating about -0.22 per unit of risk. If you would invest 7,420 in JLEN Environmental Assets on January 17, 2025 and sell it today you would lose (100.00) from holding JLEN Environmental Assets or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Catena Media PLC
Performance |
| Timeline |
| JLEN Environmental Assets |
| Catena Media PLC |
JLEN Environmental and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Catena Media
The main advantage of trading using opposite JLEN Environmental and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Catena Media 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 Catena Media will offset losses from the drop in Catena Media's long position.| JLEN Environmental vs. Ondine Biomedical | JLEN Environmental vs. GS Chain PLC | JLEN Environmental vs. Revolution Beauty Group | JLEN Environmental vs. Helios Towers Plc |
| Catena Media vs. Vitec Software Group | Catena Media vs. Celebrus Technologies plc | Catena Media vs. Aptitude Software Group | Catena Media vs. Fevertree Drinks 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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