Correlation Between JLEN Environmental and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Eastinco Mining 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 Eastinco Mining 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 Eastinco Mining Exploration, you can compare the effects of market volatilities on JLEN Environmental and Eastinco Mining 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 Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Eastinco Mining.
Diversification Opportunities for JLEN Environmental and Eastinco Mining
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JLEN and Eastinco is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl 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 Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Eastinco Mining go up and down completely randomly.
Pair Corralation between JLEN Environmental and Eastinco Mining
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Eastinco Mining. But the stock apears to be less risky and, when comparing its historical volatility, JLEN Environmental Assets is 76.01 times less risky than Eastinco Mining. The stock trades about -0.06 of its potential returns per unit of risk. The Eastinco Mining Exploration is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.65 in Eastinco Mining Exploration on November 28, 2024 and sell it today you would earn a total of 5,249 from holding Eastinco Mining Exploration or generate 807592.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.94% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Eastinco Mining Exploration
Performance |
| Timeline |
| JLEN Environmental Assets |
| Eastinco Mining Expl |
JLEN Environmental and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Eastinco Mining
The main advantage of trading using opposite JLEN Environmental and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Eastinco Mining 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| JLEN Environmental vs. Software Circle plc | JLEN Environmental vs. Worldwide Healthcare Trust | JLEN Environmental vs. PureTech Health plc | JLEN Environmental vs. Symphony Environmental Technologies |
| Eastinco Mining vs. Tata Steel Limited | Eastinco Mining vs. Various Eateries PLC | Eastinco Mining vs. Games Workshop Group | Eastinco Mining vs. Dentsply Sirona |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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