Correlation Between JLEN Environmental and Sancus Lending
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Sancus Lending 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 Sancus Lending 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 Sancus Lending Group, you can compare the effects of market volatilities on JLEN Environmental and Sancus Lending 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 Sancus Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Sancus Lending.
Diversification Opportunities for JLEN Environmental and Sancus Lending
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JLEN and Sancus is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Sancus Lending Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sancus Lending Group 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 Sancus Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sancus Lending Group has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Sancus Lending go up and down completely randomly.
Pair Corralation between JLEN Environmental and Sancus Lending
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Sancus Lending. But the stock apears to be less risky and, when comparing its historical volatility, JLEN Environmental Assets is 1.57 times less risky than Sancus Lending. The stock trades about -0.22 of its potential returns per unit of risk. The Sancus Lending Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Sancus Lending Group on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Sancus Lending Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Sancus Lending Group
Performance |
| Timeline |
| JLEN Environmental Assets |
| Sancus Lending Group |
JLEN Environmental and Sancus Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Sancus Lending
The main advantage of trading using opposite JLEN Environmental and Sancus Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Sancus Lending 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 Sancus Lending will offset losses from the drop in Sancus Lending's long position.| JLEN Environmental vs. DXC Technology Co | JLEN Environmental vs. Allianz Technology Trust | JLEN Environmental vs. Ocean Harvest Technology | JLEN Environmental vs. Charter Communications Cl |
| Sancus Lending vs. Morgan Advanced Materials | Sancus Lending vs. Golden Metal Resources | Sancus Lending vs. Ecclesiastical Insurance Office | Sancus Lending vs. Vulcan Materials Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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