Correlation Between JLEN Environmental and IShares Physical
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and IShares Physical 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 IShares Physical 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 iShares Physical Silver, you can compare the effects of market volatilities on JLEN Environmental and IShares Physical 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 IShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and IShares Physical.
Diversification Opportunities for JLEN Environmental and IShares Physical
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between JLEN and IShares is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and iShares Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Silver 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 IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Silver has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and IShares Physical go up and down completely randomly.
Pair Corralation between JLEN Environmental and IShares Physical
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the IShares Physical. In addition to that, JLEN Environmental is 1.19 times more volatile than iShares Physical Silver. It trades about -0.3 of its total potential returns per unit of risk. iShares Physical Silver is currently generating about -0.16 per unit of volatility. If you would invest 3,120 in iShares Physical Silver on September 1, 2024 and sell it today you would lose (187.00) from holding iShares Physical Silver or give up 5.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLEN Environmental Assets vs. iShares Physical Silver
Performance |
| Timeline |
| JLEN Environmental Assets |
| iShares Physical Silver |
JLEN Environmental and IShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and IShares Physical
The main advantage of trading using opposite JLEN Environmental and IShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, IShares Physical 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 IShares Physical will offset losses from the drop in IShares Physical's long position.| JLEN Environmental vs. Advanced Medical Solutions | JLEN Environmental vs. Deltex Medical Group | JLEN Environmental vs. Axway Software SA | JLEN Environmental vs. Pets at Home |
| IShares Physical vs. Tungsten West PLC | IShares Physical vs. Hardide PLC | IShares Physical vs. Quantum Blockchain Technologies | IShares Physical vs. Gfinity 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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