Correlation Between JLEN Environmental and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Liontrust Asset 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 Liontrust Asset 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 Liontrust Asset Management, you can compare the effects of market volatilities on JLEN Environmental and Liontrust Asset 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 Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Liontrust Asset.
Diversification Opportunities for JLEN Environmental and Liontrust Asset
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JLEN and Liontrust is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana 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 Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Liontrust Asset go up and down completely randomly.
Pair Corralation between JLEN Environmental and Liontrust Asset
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to generate 0.89 times more return on investment than Liontrust Asset. However, JLEN Environmental Assets is 1.12 times less risky than Liontrust Asset. It trades about -0.01 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about -0.29 per unit of risk. If you would invest 7,600 in JLEN Environmental Assets on October 11, 2024 and sell it today you would lose (40.00) from holding JLEN Environmental Assets or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Liontrust Asset Management
Performance |
| Timeline |
| JLEN Environmental Assets |
| Liontrust Asset Mana |
JLEN Environmental and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Liontrust Asset
The main advantage of trading using opposite JLEN Environmental and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| JLEN Environmental vs. Amedeo Air Four | JLEN Environmental vs. JB Hunt Transport | JLEN Environmental vs. Porvair plc | JLEN Environmental vs. Scandic Hotels Group |
| Liontrust Asset vs. Catalyst Media Group | Liontrust Asset vs. Ubisoft Entertainment | Liontrust Asset vs. Hollywood Bowl Group | Liontrust Asset vs. XLMedia 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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