Correlation Between JLEN Environmental and Auction Technology
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Auction Technology 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 Auction Technology 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 Auction Technology Group, you can compare the effects of market volatilities on JLEN Environmental and Auction Technology 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 Auction Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Auction Technology.
Diversification Opportunities for JLEN Environmental and Auction Technology
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JLEN and Auction is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Auction Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auction Technology 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 Auction Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auction Technology has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Auction Technology go up and down completely randomly.
Pair Corralation between JLEN Environmental and Auction Technology
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Auction Technology. But the stock apears to be less risky and, when comparing its historical volatility, JLEN Environmental Assets is 1.44 times less risky than Auction Technology. The stock trades about -0.28 of its potential returns per unit of risk. The Auction Technology Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 54,400 in Auction Technology Group on November 8, 2024 and sell it today you would earn a total of 4,600 from holding Auction Technology Group or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Auction Technology Group
Performance |
| Timeline |
| JLEN Environmental Assets |
| Auction Technology |
JLEN Environmental and Auction Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Auction Technology
The main advantage of trading using opposite JLEN Environmental and Auction Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Auction Technology 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 Auction Technology will offset losses from the drop in Auction Technology's long position.| JLEN Environmental vs. Sartorius Stedim Biotech | JLEN Environmental vs. Atalaya Mining | JLEN Environmental vs. Molson Coors Beverage | JLEN Environmental vs. Heavitree Brewery |
| Auction Technology vs. Cembra Money Bank | Auction Technology vs. TBC Bank Group | Auction Technology vs. Discover Financial Services | Auction Technology 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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